National Pension System is a government pension scheme where individuals can contribute a monthly amount to get regular income after retirement.
There is a need for more money after retirement, in such a situation, people plan for pension funds or other investments. Planning for raising pension funds or investment funds can be done with government schemes, stock market and bank schemes. If you are also planning to invest and want to get good fund every month, then you can invest in government pension schemes.
What is National Pension System?
National Pension System is a government pension scheme where individuals can contribute a monthly amount to get regular income after retirement . NPS benefits the citizens of India to the elderly and makes it an attractive and saving opportunity to build your retirement plan through safe and regulated market-based returns.
How to get 20 thousand rupees pension
If a person joins NPS at the age of 20 and starts investing Rs 1,000 a month, the total contribution till the time of retirement will be Rs 5.4 lakh. Given the expectation of 10 per cent return annually, the total investment will increase to Rs 1.05 crore. Now, if the NPS subscriber converts 40 percent of the corpus in a year, the prize will be Rs 42.28 lakh. Assuming an annuity rate of 10 per cent, the monthly pension can be Rs 21,140. Not only this, the NPS subscriber will get a lump sum amount of about Rs 63.41 lakh.
As the monthly contribution amount increases, the post-retirement income will also increase. For example, if a person increases his contribution amount to Rs 2,500, then after 65 years of age the pension will be around Rs 52,000 per month.
Who will get benefit?
To join NPS, certain conditions have to be fulfilled. Citizen of India, whether resident or non-resident The applicant must be between 18 to 70 years of age to submit the application and the applicant must complete the KYC process as prescribed by the scheme.
How to use NPS calculator
- To use the NPS calculator, first go to the link npstrust.org.in/content/pension-calculator.
- Now enter the date of birth and now enter the amount of your monthly contribution and the age up to which you contribute.
- Enter your return on investment and annuity return.
