NPS for Retirement Planning: National Pension System (NPS) is a very good option to get pension after retirement. According to the amount you invest in this scheme, you get the benefit of pension after maturity. In this article, we will tell you how much you have to invest every month to get a monthly pension of Rs 1.5 lakh.
NPS for Retirement Planning: Along with doing the job, we have the tension of securing the future. Apart from this, there is also tension about the expenses after retirement. In such a situation, if you also want to avail pension after retirement, then you can invest in National Pension System (NPS).
By investing in NPS, you can accumulate a huge fund. If you want, you can avail pension of Rs 1.5 lakh every month after retirement. Yes, in the National Pension System, you get the benefit of monthly pension after retirement. We will tell you how much you have to invest in NPS to get a monthly pension of Rs 1.5 lakh.
How much will you have to invest every month
To get a monthly pension of Rs 1.5 lakh, you will have to invest Rs 7,000 every month. NPS gives an annual return of about 12 percent. If you invest Rs 7,000 continuously for 25 years, then after 25 years you will have invested a total of Rs 29,40,000. If you add a return of 12 percent with this investment, then a fund of about Rs 4.54 crore will be accumulated.
40 percent of this fund can be used to buy annuity. The remaining 60 percent of the remaining fund can be withdrawn in lump sum. After buying annuity, you will get a pension of about Rs 1.5 lakh every month.
Tax benefit is available in NPS
NPS is operated by the Pension Fund Regulatory and Development Authority (PFRDA). To buy annuity, you have to use 40 percent of the NPS fund. Apart from this, you can withdraw the remaining 60 percent amount in lump sum. Lump sum withdrawal is completely tax free.
Under section 80C of the Income Tax Act, a tax benefit of Rs 1.5 lakh is also available. Apart from this, under section 80CCD (1B), you can claim tax deduction on annual investment of up to Rs 50,000.
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