NPS: If you start investing Rs 2,650 per month in NPS at the age of 21 and invest for the next 39 years, you will end up generating a pension of Rs 30,000 per month by the retirement age of 60 years.
Rs 30,000 pension per month, NPS pensions after retirement: Planning for retirement is a crucial step. As time passes, inflation also rises, and subsisting only on savings might need to be revised for you after retirement.
To achieve financial freedom in post-retirement life, investing in a retirement plan can give you a regular income once you reach retirement age. The National Pension Scheme (NPS) is one such effective tools in the country to meet that requirement. NPS is a market-linked voluntary contribution scheme that helps one save for retirement.
NPS: How to get Rs 30,000 as pension per month?
If you start investing Rs 2,650 per month in NPS at the age of 21 and invest for the next 39 years, you will end up generating a pension of Rs 30,000 per month by the retirement age of 60 years.
NPS: Here’s the calculation
Age: 21 years
Retirement age: 60
Contribution: Rs 2,650/month
Expected Return: 10%
The individual will end up with a total corpus of Rs 1,52,66,310.
If you take out the lumpsum of 60 per cent from that corpus (60 per cent is the maximum limit you can withdraw at retirement age), in that case, you will be left with an annuity of 40 per cent.
The government invests annuities in debt funds or corporate bonds where the invested amount generates a fixed income. If you get a six per cent return on annuity, then-
The amount invested in the annuity will be Rs 91,59,786.
(Disclaimer: The views/suggestions/recommendations expressed in this article are solely by investment experts. informalnewz suggests its readers to consult their investment advisors before taking any financial decisions.)
