National Pension Scheme: If you want your wife to be completely self-reliant in the future and free from financial worries, then you can arrange for her regular income from now itself. National Pension System (NPS) can be a great option for her. Through this scheme, you can ensure a lump sum of more than ₹ 1 crore and a pension of up to ₹ 44,793 per month for your wife at the age of 60. The biggest advantage of NPS is that you can decide for yourself how much pension you want after retirement.
Open NPS account for wife
You can open a New Pension System (National Pension Scheme) account in the name of your wife. You have the option of depositing money every month or year as per your convenience. You can open an NPS account in the name of your wife with just Rs 1,000. The NPS account matures at the age of 60. Under the new rules, if you wish, you can continue running the NPS account till your wife turns 65.
Investment will create a fund of Rs 1 crore
Understand this with an example- Your wife is 30 years old and you invest Rs 5000 every month in her NPS account. If she gets 10 percent annual return on the investment, then at the age of 60, she will have a total of Rs 1.12 crore in her account. She will get around Rs 45 lakh out of this. Apart from this, she will start getting pension of around Rs 45,000 every month. She will continue to get this pension for life.
How much pension, see calculation
Age- 30 years Total investment period- 30 years Monthly contribution- Rs 5,000 Estimated return on investment- 10% Total pension fund- Rs 1,11,98,471 can be withdrawn on maturity. Rs 44,79,388 Amount to buy annuity plan. Rs 67,19,083 Estimated annuity rate 8% Monthly pension- Rs 44,793.
Social Security Scheme
NPS is the Social Security Scheme of the Central Government. The money you invest in this scheme is managed by professional fund managers. The Central Government gives this responsibility to these professional fund managers. In such a situation, your investment in NPS is completely safe. However, the return on the money you invest under this scheme is not guaranteed. According to financial planners, NPS has given an average return of 10 to 11 percent annually since its inception.
Benefit of additional tax exemption
National Pension System (NPS) also offers tax benefits such as tax exemption up to Rs 2 lakh and tax exemption on withdrawal of 60% of the amount. NPS is a scheme in which after the limit of Rs 1.5 lakh is exhausted, tax exemption is also available on additional investment of Rs 50 thousand. Due to this extra exemption, you can save up to Rs 2 lakh tax every year in NPS.
