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If you invest in NPS, then know how much pension you will get after retirement, here is the complete calculation

If you invest Rs 5000 every month in NPS, then till retirement you will have accumulated a good amount of fund. In this way, if you invest this much for 30 years and after retirement put all the money in an annuity plan, then you can get a pension of 65 to 75 thousand rupees every month.

Most of the people make their retirement planning while still in the job. With this, they already get a chance to deal with the financial problems in old age. If you also invest in NPS under your retirement planning, then you will also be interested to know how much pension you will get after retirement.

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 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. On the other hand, the second option is to withdraw 60 percent of the amount at once and make an annuity plan with the remaining 40 percent. Explain that on 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 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.

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