Investing in the National Pension System (NPS) can be a better option to secure the future. By investing in NPS, you can get a pension of more than Rs 1 lakh. Let us know that after investing how much money in NPS, you can get a pension of one lakh rupees or more every month.
What is the calculation: If the age is 30 years and you are planning for retirement at the age of 60, then start investing for it now. According to the pension calculator of NPS, for a pension of one lakh rupees on retirement, 10 thousand rupees will have to be invested per month for 30 years. It has an estimated return of 10 per cent. Let us tell you here that in the last 15 years, Tier-1 NPS account has given an average return of 10 per cent. This is the reason why the estimated return has been kept at 10 per cent.
100% Annuity: At the  same time, 100% annuity will have to be purchased for this pension amount. The estimated return on annuity will be 6 per cent. Actually, it is mandatory to buy at least 40 percent of the annuity. There is an option to increase it. Any account holder can increase the annuity.
How much amount will the nominee get: In the absence of the account holder of NPS Tier-1, the nominee will get 100% of the investment amount. If we look at the investment of 10 thousand rupees for 30 years, then the nominee will get an amount of more than 2 crores.
What is NPS: National Pension System (NPS) is one of the social security initiatives of the Central Government. It is a voluntary investment scheme for public, private and unorganized sector employees. An NPS account holder can claim income tax exemption on investments up to Rs 2 lakh every year. The account holder gets income tax exemption of up to 1.5 lakh under section 80C and up to an additional Rs 50,000 under section 80CCD.
