NPS Retirement Planning: To become a millionaire, no rocket science is needed, but regular investment and choosing the right scheme is required. We are going to tell you how you can get a pension of up to Rs 2 lakh every month after retirement.
NPS Pension Calculator: Everyone worries about old age expenses. If you also want your old age to be secure and you don’t have money problems in old age, then start planning in advance. You should start saving money for retirement only on the day you start your job. In fact, the sooner you start saving, the more money you will have until retirement. There are many investment options available to you for accumulating retirement funds like EPF, NPS, stock market, mutual funds, real estate etc.
Government is running many schemes
To secure your retirement, the central government has made many schemes where you can invest. If you are employed, then you must also think that when you retire, you will get a large amount of money every month as a pension. But for this you have to invest from today, so that your old age can be secure after 60 years.
What is NPS Scheme?
National Pension System (NPS) is a government pension scheme, which includes both equity and debt instruments. NPS is guaranteed by the government. You should invest in NPS scheme to get more monthly pension after retirement.
Income tax exemption will be available
NPS Pension Yojana is a government scheme like Public Provident Fund (PPF), Employee Provident Fund (EPF), Sukanya Samriddhi Yojana etc. In this, any investor can increase his monthly pension amount by using maturity amount. Through NPS you can save tax up to 2 lakh rupees annually. Under Section 80C of Income Tax you can save tax up to Rs 1.5 lakh maximum. If you invest in NPS then you will get additional tax exemption of up to Rs 50,000.
A monthly pension of Rs 2 lakh will be given
By depositing Rs 5000 every month in NPC for 40 years, you will get Rs 1.91 crore. After this you will get 2 lakh monthly pension on investment of maturity amount. Under this, you will also get a monthly return of Rs 1.43 lakh and Rs 63,768 from the Systematic Withdrawal Plan (SWP). In this, the investor will get a monthly pension of Rs 63,768 from the annuity till the lifetime of the investor.
Rs 63,768 monthly pension in 20 years
If you invest Rs 5000 every month from 20 years till retirement then you will get a lump sum maturity amount of 1.91 crore to 1.27 crore. After this you can get a monthly pension of Rs 63,768 every month at 6% return on Rs 1.27 crore.
There are two types of NPS
There are two types of NPS, NPS Tier 1, and NPS Tier-2. The minimum investment in tier-1 is 500 rupees while in tier-2 it is 1000 rupees. However, there is no maximum investment limit. There are three investment options available in NPS, in which the investor has to choose where his money will be invested. Equity, corporate debt and government bonds. If there is more exposure in equity, it also gets more returns. Please note that any investment should be done in consultation with your investment advisor.
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