You can take 60% of the total amount invested in NPS as a lump sum after turning 60 years old, while at least 40% of the amount has to be used as annuity. You get pension from this annuity.
National Pension System, popularly known as NPS, is a government scheme. Despite being market linked, this scheme is considered very good. Through NPS, you can accumulate a good fund during your retirement, as well as arrange for a monthly pension in old age. There are two types of accounts in it, Tier 1 and Tier 2. Tier 1 account can be opened by any person but Tier-2 account can be opened only if you have a Tier-1 account.
You can take 60% of the total amount invested in NPS as a lump sum after turning 60, while at least 40% of the amount has to be used as an annuity. You get pension from this annuity. If you are also thinking of investing in NPS, then know how much you have to invest in this scheme every month to get a pension of more than Rs 50,000.
This way you will get more than 50 thousand pension
Suppose you start investing in NPS at the age of 35, then you will have to invest in the scheme continuously for 60 years, that is, you will have to invest in the scheme for 25 years. To get a pension of more than 50 thousand rupees every month, you will have to invest at least 15,000 rupees every month. According to the NPS calculator, if you invest 15,000 rupees every month continuously for 25 years, then your total investment will be Rs 45,00,000. But at the rate of 10%, the interest on this will be Rs 1,55,68,356.
In this way, you will have a total of Rs 2,00,68,356. If you use 40% of this amount as annuity, then at the rate of 40%, Rs 80,27,342 will be your annuity and you will get Rs 1,20,41,014 as lump sum. If you get 8% return on the annuity amount, then you will get a pension of Rs 53,516 every month.
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