National Pension Scheme: NPS is a social security scheme of the central government. The money you invest in this scheme is managed by professional fund managers.
National Pension Scheme: If your wife does not have to depend on anyone for money in the future, then you can arrange for regular income for her. You can open a New Pension System (NPS) account in the name of your wife. The NPS account will give a lump sum amount to your wife at the age of 60. Apart from this, you will get the benefit of pension every month. This will be the wife’s regular income. The biggest benefit of NPS Account is that you can decide yourself how much pension you want every month. Your wife will not have any shortage of money at the age of 60.
Open an NPS account in the name of your 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.
A monthly investment of ₹5000 will create a fund of ₹1.14 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 investment, then at the age of 60, she will have a total of Rs 1.12 crore in her account. She will get about Rs 45 lakh out of this. Apart from this, she will start getting pension of around Rs 45,000 every month. She will keep getting this pension for life.
How much will she get as lump sum amount and how much pension
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Total pension fund- Rs 1,11,98,471 can be withdrawn on maturity
Amount to buy annuity plan: Rs 44,79,388
Estimated annuity rate: 8%
Monthly pension- Rs 44,793
Fund managers do account management
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.
