The government has started a very special scheme for its employees, in which even after retirement, the employees will get an amount of up to 2 lakhs every month and for this they will have to do this small work from now on. Let’s know what is the whole process
Everyone is worried about the expenses of old age. If you also want that your old age is safe and you do not have any problem of money in old age, then you should start planning in advance. Saving money for retirement should be started only on the day your job starts. In fact, the sooner you start saving, the more money you will get till retirement. There are many investment options available to you to accumulate retirement funds like EPF, NPS, share market, mutual funds, real estate etc.
Government is running many schemes
To secure your retirement, the central government has made many schemes, where you can invest. If you are employed, then you too must be thinking that when you retire, you will get a hefty amount every month as pension. But for this you have to invest from today itself, so that after 60 years your old age can remain secure.
What is NPS schemeĀ
National Pension System (NPS) is a government pension scheme, which includes both equity and debt instruments. NPS gets a guarantee from the government. To get more monthly pension after retirement, you should invest in NPS scheme.
Will get exemption in income tax
NPS pension scheme is a government scheme like Public Provident Fund (PPF), Employees Provident Fund (EPF), Sukanya Samriddhi Yojana etc. In this, any investor can also increase his monthly pension amount by using the maturity amount properly. Through NPS, you can save tax up to Rs 2 lakh annually. Under section 80C of income tax, you can save tax up to a maximum of Rs 1.5 lakh. If you invest in NPS, you will get an additional tax exemption of up to Rs 50,000.
Will get monthly pension of Rs 2 lakh
By depositing Rs 5000 every month in NPC for 40 years, you will get Rs 1.91 crore. After this, you will get 2 lakh monthly pension on the investment of maturity amount. Under this, you will also get Rs 1.43 lakh from Systematic Withdrawal Plan (SWP) and a monthly return of Rs 63,768. In this, as long as the investor is alive, a monthly pension of Rs 63,768 is available from the annuity.
Rs 63,768 monthly pension in 20 years
If you invest Rs 5000 every month from 20 years till retirement, then you will get a lump sum maturity amount of 1.91 crore to 1.27 crore. After this, you can get a monthly pension of Rs 63,768 every month on Rs 1.27 crore with 6% return.
There are two types of NPS
There are two types of NPS, NPS Tier 1, and NPS Tier-2. The minimum investment in Tier-1 is Rs.500 while in Tier-2 it is Rs.1000. However, there is no maximum investment limit in this. There are three investment options available in NPS, in which the investor has to choose where his money will be invested. Equity, Corporate Debt and Government Bonds. The higher the exposure to equity, the higher the returns. Keep in mind that you should make any investment only after talking to your investment advisor.
