NPS Scheme: If you do a job and are worried about your retirement, then NPS can be a good option for you. By investing in this scheme, you can plan for your retirement. The government has prepared this scheme keeping in mind the people doing private jobs. Let’s know about it in detail.
Retirement is the biggest concern of the job seekers. People are worried about how the family’s expenses will go after retirement. People start saving as soon as they start a job so that there is no problem after retirement.
People save for retirement so that they do not face any kind of problem. However, if you want to create a retirement corpus for pension, then the National Pension System can be the best option for this.
The government also runs a scheme so that people do not face any kind of problem after retirement. The name of this scheme is National Pension Scheme (NPS). If you invest properly in this scheme, then after retirement you can get a pension of up to 50 thousand rupees every month. For this you have to invest just two hundred rupees every day.
Get good returns with low risk
The government has made NPS in such a way that people investing in it can take care of their expenses even after retirement. NPS is a good way to invest. It gives higher returns than PPF or Fixed Deposit and the risk is also less. Investors have two options to invest in NPS – Active and Auto Choice.
Subscriber cannot withdraw the entire corpus on maturity. He has to invest 40% of the total NPS corpus in buying an annuity plan from a life insurance company. There are four asset classes in NPS – Equity, Corporate Debt, Government Bonds and Alternative Investment Funds.
This way you will get a pension of 50 thousand
If you want to get a pension of 50 thousand rupees every month, then you have to save 200 rupees every day. In this way you will save Rs.6000 per month. Suppose you start investing six thousand rupees every month from the age of 24, then you will accumulate Rs 25,92,000 for 36 years.
Now if you get 10% return on this, then the total corpus value will be Rs 2,54,50,906. Now if 40% of this is invested in annuity, then the total amount will be around Rs 1.52 crore. After this you will get a pension of 50 thousand rupees comfortably every month.
Get tax exemption
One advantage of this scheme of the government is that in this you also get tax exemption. The NPS account holder gets income tax exemption of up to Rs 1.5 lakh under section 80C and an additional Rs 50,000 under section 80CCD. However, there is a tax liability on the income from annuity. By adding this income to all your other earnings, your slab will be determined and income tax will have to be paid accordingly.
