NPS i.e. National Pension System can prove to be a better scheme in terms of retirement planning. If you start investing in NPS at the age of 40, then how much will you have to invest every month to get a pension of Rs 50,000?
NPS Pension Calculator: After retirement, your life is often not the same as it is during the job. You have a lot of time, but neither the body is capable of working that hard nor the income is very good. Especially for those doing private jobs, there is no source of income after retirement. In such a situation, it is very important to do retirement planning for yourself in time. If you are late in this, then do not think too much now and start planning for a good income for your old age.
NPS i.e. National Pension System can prove to be a better scheme in this case. This is a government scheme which is linked to the market i.e. its return is based on the market. This scheme is very popular in terms of retirement planning because it arranges for your pension along with a lump sum amount. Let us tell you that if you start investing in NPS at the age of 40, then how much investment will you have to make every month to get a pension of Rs 50,000?
How is your pension calculated
Any person between 18 and 70 years of age can contribute to NPS. The contribution you make to NPS is divided into two parts. After retirement, you can take 60% of the total corpus as a lump sum and 40% goes into annuity, which creates your pension. Pension Fund Regulatory and Development Authority (PFRDA) operates this scheme.
If you start investing at the age of 40, how will you get a pension of Rs 50,000?
If you are investing in NPS at the age of 40 with the hope that you will get a pension of at least Rs 50,000 after retirement, then you will have to keep a good amount of investment in it. You will have to invest at least Rs 15,000 per month at the age of 40. You will have to continue this investment for at least 65 years, that is, you have to keep investing Rs 15,000 for a total of 25 years.
In this case, your total investment will be Rs 45,00,000. If you get interest at the rate of 10% on this, then you will get Rs 1,55,68,356 as interest. In this case, the total corpus will be 45,00,000 + 1,55,68,356 = 2,00,68,356. You will get 60% of Rs 2,00,68,356 i.e. Rs 1,20,41,013 as lump sum and you will have to invest 40% amount i.e. Rs 80,27,342 in annuity. If you assume an 8% return on your annuity investment, then according to this, you will get Rs 53,516 every month as pension.
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