Start investing for retirement from today on NPS Diwas, after 60 years you will get a pension of Rs 50000 every month
National Pension Scheme (NPS): If you want to get your pension every month after retirement, then you should start investing in NPS right now, not today. NPS is a government investment scheme that provides a great way to secure your financial future. Let us tell you how you can get a pension of Rs 50,000 every month through NPS.
If you also want a pension every month after retirement, then you should start investing for it not today but right now. If you continue to receive a pension, there will be no need to change your lifestyle after retirement.
Today i.e. 1st October is celebrated every year in India as National Pension System (NPS) Day, which promotes pension and retirement planning among the citizens. Let us tell you how you can get a pension of Rs 50,000 every month through NPS. But before that let us understand what NPS is.
NPS is a government-run investment scheme that provides a good opportunity to secure your financial future. NPS provides customers with the facility to allocate their investments across different asset classes.
NPS has two types of accounts – Tier 1 and Tier 2, Tier 1 is purely a pension account, and Tier 2 is a voluntary savings account linked to the Pension Regulatory Authority of India (PFRDA).
Let us tell you that by investing in a Tier 1 NPS account, you also get income tax benefits. Under Section 80C of the Income Tax Act, NPS subscribers can claim tax deductions up to 10 percent of their gross income, subject to a limit of Rs 1.5 lakh.
Additionally, an additional deduction of Rs 50,000 is also available exclusively for NPS subscribers under section 80CCD(1B).
Experts recommend starting by dividing your savings into short- to medium-term goals and long-term retirement planning. To secure adequate retirement income through NPS, you need to do good planning.
Suppose you are 30 years old and you invest Rs 11000 every month in NPS, then accordingly you will have to invest till you are 60 years of age i.e. you will have to invest for a total of 30 years. In NPS you can expect returns of 9 to 12 percent annually.
In such a situation, if you see an average return of even 10 percent, you will get a pension of Rs 50,145 every month. Your total investment amount will be Rs 39,60,000, total pension corpus will be Rs 39,60,000 and you will get a profit of Rs 39,60,000.