NPS for Retirement Planning National Pension System (NPS) is a very good option to get pension after retirement. You get the benefit of pension after maturity according to the amount you invest in this scheme. In this article, we will tell you how much you have to invest every month to get a monthly pension of Rs 1.5 lakh.
National Pension System: Along with doing the job, we have the tension of securing the future. Apart from this, there is also tension about the expenses after retirement. In such a situation, if you also want to avail the benefit of pension after retirement, then you can invest in the National Pension System (NPS).
By investing in NPS, you can accumulate a huge fund. If you want, you can avail pension of Rs 1.5 lakh every month after retirement. Yes, in the National Pension System, one gets the benefit of monthly pension after retirement. We will tell you how much you have to invest in NPS to get a monthly pension of Rs 1.5 lakh.
How much will you have to invest every month
To get a monthly pension of Rs 1.5 lakh, you have to invest Rs 7,000 every month. NPS gives an annual return of about 12 percent. If you invest Rs 7,000 continuously for 25 years, then after 25 years you will have invested a total of Rs 29,40,000. If you add a return of 12 percent to this investment, then a fund of about Rs 4.54 crore will be accumulated.
40 percent of this fund can be used to buy annuity. The remaining 60 percent of the fund can be withdrawn in lump sum. After buying annuity, you will get a pension of about Rs 1.5 lakh every month.
Tax benefits are available in NPS
NPS is operated by the Pension Fund Regulatory and Development Authority (PFRDA). To buy an annuity, you have to use 40 percent of the NPS fund. Apart from this, you can withdraw the remaining 60 percent amount in lump sum. Lump sum withdrawal is completely tax free.
A tax benefit of Rs 1.5 lakh is also available under section 80C of the Income Tax Act. Apart from this, you can claim tax deduction on annual investment of up to Rs 50,000 under section 80CCD (1B).
