National Pension System ie NPS is considered one of the cheapest pension schemes. In today’s time, National Pension System is a good option to get monthly pension along with a large corpus on retirement.
Retirement planning and investing for it should be started in the initial days of the job itself. In today’s time, National Pension System is a good option to get monthly pension along with a large corpus on retirement. In NPS, any citizen of India whose age is between 18 to 70 years, can join this scheme after some necessary procedures.
NPS is such a scheme in which you build up a substantial fund every month little by little till retirement. Here we are telling you that if you invest Rs 5000 in NPS every month, 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 5,000 every month in NPS account, then your annual investment in it will be Rs 60,000, that is, by the age of 60, you will have deposited a total of Rs 18 lakh in the next 30 years. At the same time, at the time of retirement, your total corpus will be around Rs 1,13,96,627. This amount 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 for withdrawal of 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. On the other hand, 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 on retirement, you have to invest at least 40% of NPS in annuity plan.
How much pension will you get?
If you choose the 40 per cent option, then out of your total corpus ie Rs 1,13,96,627, you will have to put Rs 45,58,650 in annuity. On this you will get about 7-8 percent interest annually. In such a situation, every year you will get pension ranging from about Rs.3 lakh 20 thousand to Rs.3.5 lakh. On the other hand, if you choose the option of 100 percent annuity, then you will get a pension of about 8 to 9 lakh rupees annually. In this way, you will get around 65 thousand to 75 thousand rupees as pension every month.
