Today let us assume that you are 30 years old now and you deposit Rs 5000 every month in NPS account. In this way your annual investment will be 60 thousand rupees. In the next 30 years, you will deposit a total of Rs 18 lakh in this way. Know how much pension you will get on retirement.
Retirement planning is very important. Today we will talk about the best retirement instrument NPS. Today we will understand how if you deposit a little money every month, you will have a regular income even after retirement. Today let us assume that you are 30 years old now and you deposit Rs 5000 every month in NPS account. In this way your annual investment will be 60 thousand rupees. In the next 30 years, you will deposit a total of Rs 18 lakh in this way. At the same time, at the time of retirement, your total corpus would have been around Rs 1,13,96,627, out of which Rs 95,96,627 would have come only from interest. This is the power of compounding, whose money goes on increasing. Now the question is that if you are investing Rs 5000 every month, then how much pension will you get after retirement? Let’s know.
When you retire, you will have two options. Either you invest all your money in an annuity plan and start taking pension from it. Or withdraw 60% of the amount and make an annuity plan with the remaining 40%. At least 40 percent of NPS has to be invested in annuity plan on retirement. We are assuming that you have got an average return of 10% on your investment.
How much pension will be made on 40 percent amount
If you put 40% of your total corpus of Rs 1,13,96,627 i.e. Rs 45,58,650 in annuity, then your pension will be less. Let’s assume that you will get about 7-8 percent annual interest on this. In this case, your pension will be around Rs 3,19,105-364,692 annually i.e. Rs 26,592-30,391 monthly.
How much pension will be made on 100 percent amount
If you invest your entire corpus for pension, then you will get a very good pension every month. If you get 7-8% interest on the total corpus of Rs 1,13,96,627, then your annual pension will be around Rs 797,764-911,730. On the other hand, if you see on a monthly basis, then your pension will be made up to Rs.66,480-75,977.
The calculation has been done assuming an ideal situation. Here we are assuming that the person must have got a good job for 30 years and must have started planning for his retirement. If you want to know the pension according to yourself, then on this basis you can do the calculation by reducing or increasing the age. Keep in mind, the sooner you start investing, the more you will benefit on retirement.
