NPS Calculator : The source of monthly income must continue even after retirement. So when we start a job, we should also plan for retirement.
NPS Calculator : Everyone wants to have a smooth and stress-free post-retirement life. You should always have money to meet your needs and daily expenses. Hence the source of monthly income must be constant. So when we start a job, we should also plan for retirement. The National Pension System is a good option when considering retirement funds. Because this can create a huge retirement fund. Along with this you can also get monthly pension. Also NPS is the cheapest pension product.
1 Lakh Monthly Pension Planning
Suppose you retire at the age of 60 and expect to receive a monthly pension of Rs 1 lakh, then consider how much to invest in NPS every month. Let us understand this with the help of NPS calculator of SBI Pension Fund. Suppose you are 21 years old and want to retire at 60 years. Thus, you get a total investment period of 39 years for approximate retirement planning.
Monthly investment in NPS: Rs 10,000
Total contribution in 39 years: Rs 46.80 lakh
Estimated return on investment: 10 per cent
Net amount at maturity: 5.62 crore
Annual purchase: 40 per cent (2.25 crore)
Estimated annuity rate: 6 per cent
Pension at age 60: 112458 per month
(Note: This calculation is an estimated figure. Actual figures may vary.)
If you take 40 percent annuity in NPS and the annuity rate is 6 percent per annum, you will get a lump sum of Rs 3.37 crore after retirement and 2.25 crore will go into annuity. Now with this annuity amount you will get a pension of around one lakh rupees per month.
The higher the annuity amount you keep, the higher the pension you will get. Pension Fund Managers registered by PFRDA are responsible for investing the amount deposited in NPS. They invest your investments in equities, government bonds and non-government bonds as well as fixed income instruments.
A required annuity to take 40 percent of
The annuity is a contract between you and the insurance company. According to this agreement, a minimum of 40 percent of the annuity must be purchased in the National Pension System (NPS). The higher the amount, the higher the pension amount. The amount invested under annuity is received as pension after retirement and the remaining amount of NPS can be withdrawn as a lump sum.
Under Section 80CCD (1B) of the Income Tax Act under NPS, the benefit of additional tax deduction is available on investments up to Rs 50 thousand. If you meet the limit of up to Rs 1.5 lakh in section 80C, you can avail this additional tax benefit.
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