NPS: Due to rising prices in the country, many people are facing a lot of difficulties in controlling their household budget.
National Pension System: At present, due to the increase in inflation, the cost of living of the common people is continuously increasing. Due to rising prices of basic commodities like gasoline, diesel and vegetables, many people are facing lot of difficulties in controlling their household budget. In such difficult circumstances, it is only fair to worry about the future, especially life after retirement. There are many strategies that can beat inflation and make you a billionaire within a few years and one such way is the National Pension System .
The National Pension System, or NPS, is a policy designed by the government to provide Indian citizens with some form of financial security after retirement. It was initially a government retirement scheme but later it was opened to those working in the private sector. The money deposited in the Pension Fund can be used by any person above the age of 60 years.
Eligibility for National Pension System
Any Indian citizen who is at least 18 years old and has a minimum initial investment of Rs.500 can start. He can easily register for Tier 1 or Tier 2 account.
Objective of this pension system
NPS aims to build savings for retirement, and pension fund managers invest in things like stocks, bonds from businesses and government assets. NPS is an attractive option for retirement planning, as it offers good returns which are now better than the rate of inflation.
Calculate like this
If you are 34 years old, and you invest Rs 3000 per month in this scheme, you still have 26 years to contribute to your pension account. Given that the annual ROI or interest rate of 10% is estimated. The total principal invested in NPS will be Rs 9.36 Lakhs and after calculating NPS you will get Rs 44.35 Lakhs on maturity.
