: NPS Calculator Like SIP, the government pension scheme National Pension System (NPS) also has the facility of topping up every year. That is, if you invest a fixed amount every month at the beginning of the scheme, then you can increase it by 5%, 10% or 20% every year. If you take advantage of top up in NPS, then compared to normal investment, you can get a huge increase in the monthly pension on retirement as well as the lump sum fund. Here we have told that if you plan at the age of 25, then by topping up, both your pension and retirement fund will increase 3 times.
SIP Return: 21 years old 3 mutual fund schemes, annualized return up to 18%, value of 10 thousand SIPs increased to 1.5 to 2 crores
NPS: What is this government pension scheme
National Pension System is an investment scheme. This scheme is designed for pension after retirement. It is being regulated by PFRDA or Pension Fund Regulatory and Development Authority under PFRDA Act 2013. Under NPS, investors’ savings are deposited in the pension fund. Any Indian citizen (government employee or private sector employee) between the age of 18 to 70 years can open an account in NPS. After opening the account, one has to contribute till the age of 60 or till maturity. At least 20 years of investment is necessary in this.
NFO: Opportunity to invest in Mirae Asset Nifty PSU Bank ETF, you will get the benefit of the rise in the stock of government banks, what is the specialty of this ETF
NPS: Top up and top down investment plan
Let’s assume that there are 2 friends Rahul and Raghav. Rahul decided to invest Rs 3000 every month in NPS at the age of 25. He planned to invest till the age of 60. Rahul intends to invest only Rs 3000 every month during the entire period.
On the other hand, Raghav also decided to invest Rs 3000 every month at the age of 25 and planned to remain in the scheme till the age of 60. But Raghav intends to increase the investment amount by 10 percent every year.
Mutual Fund Return: 2 crores made with 1000 rupees monthly SIP, HDFC Mutual Fund scheme did this amazing job
Case 1 – NPS : Calculation without top up
Age to start investing: 25 years
Investment period: 35 years (till age 60)
Investment in NPS every month: Rs 3,000
Your total investment in 35 years: Rs 12,60,000
Estimated return on investment: 10% p.a.
Total Corpus: Rs 1,14,84,912 (Rs 1.15 crore)
Total profit: Rs 1,02,24,912 (Rs 2.68 crore)
Total tax saving: Rs 3,78,000
Investment in annuity plans: 55%
Annuity Rate: 8%
Pension Wealth: Rs 63,16,702 (around Rs 63 lakh)
Lump sum withdrawal amount: Rs 51,68,210 (Rs 51.68 lakh)
Monthly pension: 41,111 (about 42 thousand rupees)
By investing with this strategy, you will get a lump sum fund of about Rs 51.68 lakh when you retire at the age of 60. At the same time, you will start getting a pension of about 41 thousand rupees every month.
(Source: SBI Pension Fund Calculator)
Return: 10 most economical mutual funds, top the return chart, money is growing 24 to 30% annually in SIP
Case 2 – NPS : Calculation with Top Up
Age to start investing: 25 years
Investment period: 35 years (till age 60)
Investment in NPS every month: Rs 3,000
Top up investment every year: 10%
Your total investment in 35 years: Rs 97,56,877
Estimated return on investment: 10% p.a.
Total Corpus: Rs 3,65,84,615 (Rs 3.66 crore)
Total profit: Rs 2,68,27,7368 (Rs 2.68 crore)
Total tax saving: Rs 29,27,063
Investment in annuity plans: 55%
Annuity Rate: 8%
Pension Wealth: Rs 2,01,21,538 (around Rs 2 crore)
Lump sum withdrawal amount: Rs 1,64,63,077 (Rs 1.65 crore)
Monthly pension: Rs 1,34,144 (about Rs 1.34 lakh)
By investing with this strategy, you will get a lump sum fund of Rs 1.66 crore when you retire at the age of 60. At the same time, you will start getting a pension of about Rs 1.34 lakh every month.
(Source: SBI Pension Fund Calculator)
