NPS Calculator: Anyone can plan to get pension after retirement by investing in NPS. But how much do you have to invest in it so that you get a pension of Rs 1 lakh every month after the age of 60, let’s know the complete calculation.
NPS Calculator: The government had discontinued the Old Pension Scheme (OPS) in 2004 for central and state employees. The New Pension Scheme (NPS) was started by the government by closing OPS. In this, employees have to contribute 10 percent of their basic salary. But the government later started NPS for crores of people working in the private sector as well. By investing in it, anyone can avail the benefit of pension after retirement. But now the question is how much should you invest now to get a good pension after retirement.
Facility to decide income after retirement
Through the New Pension Scheme (NPS), you can decide an income for yourself after retirement. NPS is a government scheme that helps in saving for retirement based on the performance of the stock market. Earlier it was started for government employees. But since 2009 it is available to people across the country. Its purpose is to inculcate the habit of saving for retirement and improve the pension system.
A big fund will be created at the time of retirement
The New Pension Scheme (NPS) run by the government is completely based on your wish. In this, you can deposit money in your own pension account while working. Gradually, the money deposited will become a big fund at the time of your retirement. You will get pension every month from the interest earned from this fund. NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
How much money will have to be deposited
The more and at what age you deposit money in NPS, the more pension you will get after retirement. Many employed people want to know how much money they will have to deposit now to get a pension of Rs 1 lakh every month after retirement. Let’s know-
> You have to start at the age of 35, with an investment increasing at the rate of 10% annually and retire at the age of 60.
> If 80% of the fund is used for 6% annuity, you need to contribute Rs 17,000 every month.
> To use 40% of the corpus for annuity, a monthly contribution of Rs 34,000 is required.
> In both cases, the monthly income after retirement will be Rs 1 lakh.
Who can invest in NPS?
Any Indian between the age of 18 and 70 years can take advantage of the New Pension Scheme (NPS). This is a great way to increase income after retirement. You also get the benefit of tax exemption on investing in it. By depositing money regularly in NPS, you can plan for retirement and make your old age financially secure.
Benefits of investing in NPS
> NPS offers many investment options so that you can deposit money according to your need.
> This is an easy way to save tax for retirement.
> Wherever you work or live, you can easily transfer your NPS account.
> It is managed in a transparent manner under the supervision of the Pension Fund Regulatory and Development Authority (PFRDA).
> It offers the benefit of low management fee and compound interest.
> You can also manage your NPS account online.
Tax Benefits
The New Pension Scheme (NPS) is a great way to save money for retirement. Investing in it also gives you income tax exemption. Apart from the exemption of up to Rs 1.5 lakh under the Income Tax Act, 1961, investing in NPS gives you the benefit of an additional tax deduction of Rs 50,000 under Section 80CCD.
