Do you want a monthly pension of Rs 75,000 after retirement? You can invest in NPS. The NPS is regarded as the best method of retirement planning. This is a government scheme where a sizable sum can be raised till retirement, provided the money is deposited on a regular basis.
When the NPS matures, the investor can withdraw a lump payment and use the remaining funds to buy an annuity plan that will provide a fixed pension for the rest of their lives.
NPS is thought to be preferable for those who need a fixed monthly sum for post-retirement expenses. Particularly if there is no source of income. NPS investments carry relatively little risk, while PPF offers greater returns than Fixed Deposits. The subscriber has the option to invest under NPS in one of two modes: active or auto choice.
How to get Rs 75000 rupees pension?
The consumer under Active Choice authorizes the investment of his funds in government and stock market securities. Active Choice can accept investments of up to 75% of the entire NPS investment.
For a monthly investment of Rs. 75,000, the NPS maturity amount, or Rs. 3.83 crores on the subscriber's 60 years, should be Rs. This cash will be obtained from the investment made in the annuity plan at the time of maturity. The most crucial issue is to figure out how to raise Rs 3.83 crore so that a monthly pension of Rs 75,000 will be accessible after the age of 60.
Start Investing with Rs 10,000
Consider a 25-year-old who begins contributing Rs 10,000 to NPS each month for the next 35 years. At the age of 60, Rs 3,82,82,768 will have accumulated at a return of 10% annually. If 40% of this sum is used to purchase an annuity plan, you will begin receiving Rs 76,566 per month after you reach retirement age. When they retire, people who start depositing Rs 16,500 per month in NPS at the age of 30 will easily receive a pension of Rs 75,218.
In NPS, there are two different methods of account opening: Tier 1 and Tier 2 accounts. Every NPS subscriber will automatically receive a Tier 1 account; however, Tier 2 accounts may be formed at the user's option. NPS was first solely launched for government workers, but later it was launched for workers across numerous sectors.