National Pension scheme NPS Calculation: Planning for retirement should start with the job itself. Plan keeping in mind the monthly expenses, regular income and tax exemption. Like salary, arrange for money to keep coming in your account every month.
NPS Retirement Benefit Calculation: If you want to arrange regular income after retirement, then do planning. Retirement planning is such planning that should start as soon as you start your job. Many types of pension plans offer the benefit of pension after retirement. But, National Pension System (NPS) can be the best option. It not only offers retirement benefits, but also includes earning features like tax exemption, regular income and pension. With this, there is no worry about monthly expenses. Like salary, money comes from National Pension Scheme every month in your account as regular income.
Start saving with Rs.150
- Suppose you are 21 years old. Start saving Rs 150 daily from here. Investment in the month will be Rs 4,500.
- One has to invest continuously till the age of 60, total investment of 39 years.
You will invest Rs 54000 annually and in the 39th year, Rs 21.06 lakh will be deposited in the scheme. - If an average return of 10% is given, then the amount on maturity will be Rs 2.59 crore.
According to this calculation, then on retirement you will get a monthly pension of Rs 51,848. - In the 39th year itself, you will get a lump sum of Rs 1.56 crore
- There is an option of 40 percent annuity in NPS. In such a situation, after retirement at the annual annuity rate of 6%, a lump sum amount of Rs 1.56 crore is available. The remaining amount of Rs 1.04 crore will go to the annuity. Now from this annuity amount, you will get a pension of Rs 51,848 every month. The higher the annuity amount, the higher will be the pension.
How can an NPS account be opened?
- Two types of accounts are opened under NPS Tier-1 and Tier-2.
- Tier-1 is a retirement account, while Tier-2 is a voluntary account, in which any salaried person can start investing on his own behalf.
- Tier-2 account is opened only after opening of Tier-1 account.
- For opening an NPS Tier-1 account, a contribution of Rs 500 and for a Tier-2 account, a minimum contribution of Rs 1000 will have to be paid. Earlier the limit was Rs 6,000, which was reduced to Rs 1,000.
- You can invest till the age of 65.
- It is necessary to buy 40 percent annuity on NPS investment.
60 percent of the amount can be withdrawn in one lump sum after 60 years. - If the minimum annual investment is not made, the account is frozen and deactivated.
You can also start NPS account online
1. To open an NPS account, visit enps.nsdl.com/eNPS or Nps.karvy.com.
2. Click on New Registration and fill your details. Mobile number will be verified by OTP. Enter the bank account details.
3. Select your portfolio and fund. set name.
4. The bank account whose details are filled, the canceled check of that account will have to be given. Apart from this, photo and signature will have to be uploaded.
5. After making the payment, your Permanent Retirement Account (PRN) number will be generated. You will also get a payment receipt.
6. After making the investment, go to the ‘e-sign/print registration form’ page. Here you can register with PAN and Netbanking. This will do KYC (Know your customer).
Get more benefit of income tax exemption
In NPS, customers also get the facility of tax exemption. Tax exemption is available under sections 80CCD(1), 80CCD(1b) and 80CCD(2) of the Income Tax Act. Apart from Rs 1.50 lakh under section 80C on NPS, you can take a further deduction of Rs 50,000. By investing in NPS, you can avail income tax exemption of Rs 2 lakh.
What are the other benefits?
You can also transfer your NPS account. You can also change its location according to your need. Subscriber can access his NPS account online through mobile application and system. That is, to take advantage of this scheme, you do not need to go anywhere, all your work will be done sitting at home.
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