NPS Calculator: Through monthly investment of just Rs 22,000, you can create a corpus of 1 crore in addition to monthly pension till the age of 60 years.
NPS Scheme: By the way, it is true that the sooner retirement planning is started, the more it benefits. However, it is very rare that a person starts his retirement planning along with starting a job in the private sector. But it is not that you do not have better plans for creating a retirement fund or pension. National Pension System is one such option, through which you can start investing late and arrange a large retirement corpus as well as monthly pension. Even if you are 40 years old, you can still plan for 1 crore lump sum fund and about 33 thousand monthly pension by investing in NPS. Understand calculations…
1 Crore Lumpsum Fund
If the age of the investor is 40 years and he starts investing in this scheme, then he will get an opportunity to invest for the next 30 years. If he has set a target of 1 crore lumpsum retirement fund and more than 30 thousand monthly pension, then 22,000 monthly contribution will have to be made.
- Monthly investment in NPS: Rs 22,000
- Total contribution in 20 years: Rs 52.80 lakh
- Estimated Return on Investment: 10%
- Total amount on maturity: Rs 1.68 crore
- Annuity Purchase: 40%
- Estimated Annuity Rate: 6%
- Lumpsum Fund on Retirement: Rs 1.01 crore
- Pension at the age of 60: Rs 33,691 per month
(Note: This calculation is an approximate figure. Actual figures may vary.)
NPS: Pension is received from the annuity amount
In NPS, if you take 40 per cent annuity (minimum that is required to be kept) and the annuity rate is 6 per cent per annum, then after retirement you will get a lump sum of Rs 1.01 crore and Rs 67.38 lakh will go into annuity. Now with the amount of this annuity, you will get a pension of more than 33 thousand rupees every month. The higher the annuity amount, the higher the pension you will get.
NPS: Who can invest
In NPS, any citizen of India whose age is between 18 to 65 years can take part in this scheme after some necessary procedures. The responsibility of investing the amount deposited in NPS is given to the pension fund managers registered by PFRDA. They invest your investments in equity, government securities and non-government securities apart from fixed income instruments.
Tax exemption
In NPS, customers also get the facility of tax exemption. Tax exemption is available under section 80CCD(1), 80CCD(1b) and 80CCD(2) of the Income Tax Act. Apart from section 80C i.e. Rs 1.50 lakh on NPS, you can take a further exemption of Rs 50,000. By investing in NPS, you can avail income tax exemption of Rs 2 lakh.
