NPS Rules: Anyone can plan to get pension after retirement by investing in NPS. But how much do you have to invest in it so that you get a pension of Rs 1 lakh every month after the age of 60, let’s know the complete calculation.
One Lakh Pension From NPS: The government had discontinued the Old Pension Scheme (OPS) for central and state employees in 2004. The New Pension Scheme (NPS) was started by the government after closing OPS. In this, employees have to contribute 10 percent of their basic salary. But the government later started NPS for crores of people working in the private sector as well. By investing in it, anyone can avail pension benefits after retirement. But now the question is how much should you invest from now to get a good pension after retirement. Facility to fix income after retirement
Through the New Pension Scheme (NPS), you can fix an income for yourself after retirement. NPS is a government scheme that helps in saving for retirement based on the performance of the stock market. Earlier it was started for government employees. But since 2009 it is available to people across the country. Its purpose is to inculcate the habit of saving for retirement and improve the pension system.
A big fund will be formed at the time of retirement
The New Pension Scheme (NPS) run by the government is completely based on your wish. In this, you can deposit money in your own pension account while working. Gradually, the money deposited will become a big fund at the time of your retirement. You will get pension every month from the interest received from this fund. NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
How much money will have to be deposited
The more and at what age you deposit money in NPS, the more pension you will get after retirement. Many employed people want to know how much money they will have to deposit from now to get a pension of Rs 1 lakh every month after retirement. Let’s know-
> You will start at the age of 35, with investments growing at 10% per annum and retire at the age of 60.
> If 80% of the corpus is used for a 6% annuity, you will need to contribute Rs 17,000 per month.
> To use 40% of the corpus for annuity, a monthly contribution of Rs 34,000 is required.
> In both cases, the monthly income after retirement will be Rs 1 lakh.
Who can invest in NPS?
Any Indian between the age of 18 and 70 years can avail the benefits of New Pension Scheme (NPS). This is a great way to increase your income after retirement. You also get the benefit of tax exemption by investing in it. By depositing money regularly in NPS, you can plan for retirement and make your old age financially secure.
Benefits of investing in NPS
> NPS offers a variety of investment options so that you can deposit money according to your needs.
> It is an easy way to save tax and prepare for retirement.
> You can easily transfer your NPS account wherever you work or live.
> It is managed in a transparent manner under the supervision of the Pension Fund Regulatory and Development Authority (PFRDA).
> It offers the benefit of low management fee and compound interest.
> You can also manage your NPS account online.
Tax benefits
The New Pension Scheme (NPS) is a great way to save money for retirement. Investing in it also gives you income tax exemption. Apart from the exemption of up to Rs 1.5 lakh under the Income Tax Act, 1961, investing in NPS gives you the benefit of an additional tax deduction of Rs 50,000 under section 80CCD.
