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 50,000 pension in retirement.
NPS Retirement Scheme: If you also want that your old age is safe and you do not have money problem in old age, then you should start planning in advance. You should start saving money for retirement only on the day your job starts.
Actually, the sooner you start saving, the more money you will get till retirement. There are many investment options available to you for accumulating retirement funds like EPF, NPS, stock market, mutual funds, real estate etc.
Retirement Planning with NPS
Among all these, NPS is one such option which is safe as well as gives good returns. We are going to tell you how you can arrange a pension of Rs 50,000 per month for yourself through the New Pension System ie NPS.
50,000 rupees pension in retirement
Suppose you are 30 years old now. Today if you invest 10 thousand rupees every month in NPS. So till retirement i.e. after 30 years when you will be 60 years old then you will have lump sum amount more than 1 crore rupees in your hands and 52 thousand rupees pension will come every month, that is different. That is, your old age will pass without any tension and will not be dependent on anyone.
Invest in NPS
- Your age 30 years
- Retirement age 60 years
- Investment in NPS every month 10,000
- Expected return 9%
- Annuity period 20 years
- Investment in annuity plan 40 %
- Expected return on annuity 6%
Will retire as a millionaire
NPS is guaranteed by the government, that is, you get an annual return of 9 to 12 percent. On maturity, you have to invest 40% in an annuity scheme so that you can get regular pension. The return of annuity is also close to 6%. Now with the help of NPS calculator, know how much amount you will get after 30 years. According to the NPS calculator, after retirement
- Your total wealth Rs 1.84 crore
- Lump sum amount Rs 1.10 crore
- Pension every month Rs 52,857
NPS returns depend on many factors
Remember that all these calculations are approximate, figures and returns may vary. If you want to increase or decrease your monthly pension, then you will also have to increase or decrease the investment in NPS accordingly. The total wealth and pension from NPS depends on several factors, such as your age, and the performance of the equity market. Anyone between 18 years to 65 years can invest in NPS.
Tax benefits in NPS
Through NPS, you can save tax up to Rs 2 lakh annually. Under Section 80C of Income Tax, you can save tax up to a maximum of Rs 1.5 lakh, but there is an additional tax exemption of Rs 50,000 if you invest in NPS.
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 Rs 500 while in Tier-2 it is Rs 1000. However, there is no maximum limit for investment. 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. With more exposure to equities, it also gives higher returns. Keep in mind that you should do any investment only after talking to your investment advisor.