NPS: Today in this article we are telling you about the NPS scheme. If you deposit ₹ 5000 every month, then by the time of retirement you can become the owner of up to ₹ 18 lakh. Let us know…
Most people make their retirement planning while still in job. This gives them a way to deal with the financial problems that arise in old age.
If you also invest in NPS as part of your retirement planning, then you will also be interested to know how much pension you will get after retirement.
NPS is a scheme in which you prepare a good amount of fund every month little by little till retirement.
Here we are telling you that if you invest Rs 5000 every month in NPS, then how much pension you are going to get every month after retirement.
How much money will be collected till retirement?
If you are 30 years old now and you deposit Rs 5000 every month in NPS account, then your annual investment in it will be Rs 60 thousand, that is, by the age of 60, you will have deposited a total of Rs 18 lakh in it in the next 30 years.
At the time of retirement, your total corpus will be around Rs 1,13,96,627. This amount also includes interest of Rs 95,96,627 along with your investment.
Two options are available for withdrawal
At the time of retirement, you get two options to withdraw the amount deposited in NPS. The first option is to invest all your money in an annuity plan and keep taking pension from it every month.
The second option is to withdraw 60 percent of the amount together and make an annuity plan with the remaining 40 percent. Let us tell you that after retirement, you have to invest at least 40 percent of NPS in an annuity plan.
How much pension will you get?
If you choose the 40 percent option, then out of your total corpus i.e. Rs 1,13,96,627, you will have to invest Rs 45,58,650 in annuity. You will get about 7-8 percent annual interest on this.
In such a situation, you will get a pension ranging from Rs 3 lakh 20 thousand to Rs 3.5 lakh every year. Whereas if you choose 100 percent annuity option.
So your annual pension will be around Rs 8 to 9 lakh. In this way, you will get around Rs 65 thousand to 75 thousand as pension every month.
