NPS Vatsalya Pension Calculation: The Modi government has started the NPS Vatsalya scheme, under which you can invest for your child’s future. This is an extension of the regular National Pension Scheme. This scheme is designed for children. When the child turns 18, the parents can exit the scheme.
NPS Vatsalya Pension Calculation: The Modi government has started the NPS Vatsalya scheme, under which you can invest for your child’s future. This is an extension of the regular National Pension Scheme. This scheme is designed for children. When the child turns 18, the parents can exit the scheme.
After this, the condition is that at least 80 percent of the total amount on maturity will have to be reinvested in an annuity plan and you can withdraw only 20 percent of the money. The benefit of NPS Vatsalya scheme will also be available for the child’s higher education, starting a business or any other major need. Let us tell you that you will have to invest at least Rs 1000 annually.
Understand the calculation of NPS Vatsalya
If you keep investing even a small amount for your child in NPS Vatsalya, you can create a large corpus by the time he/she turns 18. Let us assume that you invest Rs 1000 every month in NPS Vatsalya scheme for your child under this scheme. Let us also assume that the investment will be made for 18 years and an average return of 10 percent will be received every year. In this way, you will invest a total of Rs 2.16 lakh in 18 years, on which you will get an interest of about Rs 3,89,568. In this way, your total corpus will become Rs 6,05,568.
The child should invest after 18 years!
Let us assume that the child invests Rs 1000 monthly in it from the 19th year to the age of 60. In this way, Rs 7.20 lakh will be invested in NPS Vatsalya in a period of 60 years. On this, you will get an interest of about Rs 3.76 crore. In this way, your total corpus will become Rs 3.83 crore.
How much pension will you get?
Let us assume that after the age of 60, your child takes pension by investing all the money of NPS Vatsalya account in an annuity plan. Even if the interest rate in that plan is only 5-6 percent, your child will still get about Rs 19.15-22.98 lakh annually just as interest. That means every month you will start getting Rs 1.59-1.91 lakh as pension.
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