National Pension Systeme NPS Calculation: Retirement planning should start with the job itself. Do planning keeping in mind the monthly expenses, regular income and tax exemption. Like salary, make arrangements for the money coming into your account every month.
National Pension Systeme NPS Calculation: If you want to arrange regular income after retirement, then do planning. Retirement planning is such a planning that should start as soon as you start your job. Many types of pension plans give the benefit of pension after retirement. But, National Pension System (NPS) can be the best option among these. It not only provides retirement benefits, but also includes earning features like tax exemption, regular income and pension. Due to this, there is no worry about monthly expenses. Like salary, every month money comes from the National Pension Scheme in your account as regular income.
Start saving from Rs 150
- Suppose you are 21 years old. Start saving Rs.150 daily from here. The investment in a month will be Rs.4,500.
- Will have 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 you get an average return of 10%, then the amount on maturity will be Rs 2.59 crore.
- If the calculation is done according to this, then on retirement, your monthly pension will be Rs 51,848.
Rs 1.56 crore will be given in lump sum in the 39th year itself.
There is an option of 40% annuity in NPS. In this case, after retirement at an annual annuity rate of 6%, a lump sum amount of Rs 1.56 crore is received. The remaining amount of Rs 1.04 crore will go towards annuity. Now with this annuity amount, you will get a pension of Rs 51,848 every month. The more you keep the amount of annuity, the more pension you will get.
How can 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 opens only after Tier-1 account is opened.
- A minimum contribution of Rs 500 has to be made for opening an NPS Tier-1 account and a minimum contribution of Rs 1000 for a Tier-2 account. 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60% of the amount can be withdrawn in lump sum after 60 years. - If the minimum annual investment is not made, the account is frozen and deactivated.
NPS account can also be started 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 with OTP. Fill the bank account details.
3. Select your portfolio and fund. set name.
4. A canceled check will have to be given for the bank account whose details are filled. 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 the receipt of payment.
6. After making the investment, go to the ‘e-sign/print registration form’ page. Here you can register with PAN and NetBanking. With this KYC (Know your customer) will be done.
Income tax exemption gives more benefits
In NPS, customers also get the facility of tax exemption. Tax exemption is available under section 80CCD (1), 80 CCD (1b) and 80 CCD (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 advantages?
You can also transfer your NPS account. You can also change its location according to your need. Subscriber can access his NPS account through mobile application and system online. That is, you do not need to go anywhere to take advantage of this scheme, all your work will be done sitting at home.
