National Pension System : National Pension System is a retirement scheme in which if you plan to invest as soon as you get a job, then your old age will be spent in fun. If you save something from your monthly savings in this scheme from an early age and invest regularly in a disciplined manner, then on retirement not only a better fund can be arranged but also a good pension every month. We are telling you with calculations how by saving just Rs 100 per day, you will get a lump sum fund of Rs 40 lakh on retirement and a pension of Rs 50 thousand every month.
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Central Government Pension Scheme
National Pension System is a pension scheme of the Central Government, in which investment is made keeping retirement in mind. Any Indian citizen (government employee or private sector employee) between the age of 18 and 70 years can open an account in the National Pension System. NRIs are also eligible for this. After opening the account, one has to contribute till the age of 60 or till maturity i.e. 70 years. If we look at the return history of NPS, till now it has given 8% to 12% annual return.
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NPS Calculator
Age to start investing: 25 years
Investment in NPS every month: Rs 3000
Total investment in 35 years: Rs 12,60,000 (Rs 12.60 lakh)
Estimated return on investment: 10 per cent per annum
Total Corpus: Rs 1,14,84,831 (Rs 1.15 crore)
Investment in annuity plans: 65 per cent
Lump Sum Value: Rs 40,19,691 (Rs 40.20 lakh crore)
Pensionable Wealth: Rs 74,65,140 (Rs 74.65 lakh)
Annuity return: 8%
Monthly pension: Rs 49,768 (about 50 thousand rupees)
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How much return can be obtained
A part of the amount deposited by you in NPS is invested in equity, so this scheme cannot give guaranteed returns. However, it can still give higher returns than other traditional long term investments like PPF. If we look at the return history of NPS, till now it has given 9% to 12% annual return. In NPS, if you are not satisfied with the performance of the fund then you are also given the option to change your fund manager.
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Withdrawal rules after retirement
Currently, one can withdraw up to 60 per cent of the total corpus as a lump sum, with the remaining 40 per cent going into an annuity plan. Under the new NPS guidelines, if the total corpus is Rs 5 lakh or less, subscribers can withdraw the entire amount without buying an annuity plan. These withdrawals are also tax-free.
National Pension System is a retirement scheme in which if you plan to invest as soon as you get a job, then your old age will be spent in fun. If you save something from your monthly savings in this scheme from an early age and invest regularly in a disciplined manner, then on retirement not only a better fund can be arranged but also a good pension every month. We are telling you with calculations how by saving just Rs 100 per day, you will get a lump sum fund of Rs 40 lakh on retirement and a pension of Rs 50 thousand every month.
Central Government Pension Scheme
National Pension System is a pension scheme of the Central Government, in which investment is made keeping retirement in mind. Any Indian citizen (government employee or private sector employee) between the age of 18 and 70 years can open an account in the National Pension System. NRIs are also eligible for this. After opening the account, one has to contribute till the age of 60 or till maturity i.e. 70 years. If we look at the return history of NPS, till now it has given 8% to 12% annual return.
NPS Calculator
Age to start investing: 25 years
Investment in NPS every month: Rs 3000
Total investment in 35 years: Rs 12,60,000 (Rs 12.60 lakh)
Estimated return on investment: 10 per cent per annum
Total Corpus: Rs 1,14,84,831 (Rs 1.15 crore)
Investment in annuity plans: 65 per cent
Lump Sum Value: Rs 40,19,691 (Rs 40.20 lakh crore)
Pensionable Wealth: Rs 74,65,140 (Rs 74.65 lakh)
Annuity return: 8%
Monthly pension: Rs 49,768 (about 50 thousand rupees)
How much return can be obtained
A part of the amount deposited by you in NPS is invested in equity, so this scheme cannot give guaranteed returns. However, it can still give higher returns than other traditional long term investments like PPF. If we look at the return history of NPS, till now it has given 9% to 12% annual return. In NPS, if you are not satisfied with the performance of the fund then you are also given the option to change your fund manager.
Withdrawal rules after retirement
Currently, one can withdraw up to 60 per cent of the total corpus as a lump sum, with the remaining 40 per cent going into an annuity plan. Under the new NPS guidelines, if the total corpus is Rs 5 lakh or less, subscribers can withdraw the entire amount without buying an annuity plan. These withdrawals are also tax-free.