NPS Vatsalya Latest Calculator : Keeping your children in mind, the Central Government has launched a new pension scheme NPS Vatsalya, through which you can plan to secure the future of your children as soon as they are born. This is such a scheme, if you focus on it, your children will not have any tension about money after retirement. Under this scheme, parents can invest for the future of their children under 18 years of age, which will be converted into a regular NPS account when the children reach the age of 18 years. If the account is started with just Rs 3000 at the time of the child’s birth, then by the time the child turns 60, a corpus of Rs 36 crore will be created.
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Specialty of NPS Vatsalya
All children below 18 years of age are eligible for NPS Vatsalya. The minimum annual contribution in this scheme is Rs 1000, while there is no limit on the maximum deposit. After the age of 18 years, this account will convert into Tier 1. If the corpus is less than Rs 2.5 lakh when the child turns 18 years of age, the entire amount can be withdrawn. If the corpus is more than Rs 2.5 lakh, then after withdrawing 20 per cent of the amount, it is necessary to invest the remaining 80 per cent of the amount for annuity. After the child turns 18, he can continue that account with regular investments till the age of 60.
Since the launch of NPS Vatsalya, accounts of about 33 thousand children have been opened under it. More than 60 percent of these accounts have been opened online.
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NPS Vatsalya Calculator
Here we have given an example of opening an account at the time of birth of a child, which is started with a monthly investment of Rs 3000. The investment was topped up by 10 percent every year. This investment is made till the age of 60.
Monthly investment: Rs 3000
Annual investment: Rs 36000
Estimated return: 10 percent annually
Top up every year: 10 percent
Total investment till the age of 18: Rs 16,41,570
Total corpus at the age of 18: Rs 36,02,826
Interest benefit: around Rs 20 lakh
* Here you can withdraw 20 percent amount and then 80 percent amount will have to be invested in annuity plan. After which pension will start on completion of 60 years of age.
If you continue investing till the age of 60
Monthly investment: Rs 3000
Annual investment: Rs 36000
Estimated return: 10 percent annually
Top up every year: 10 percent
Total corpus at the age of 60: Rs 46,03,76,239 (about Rs 46 crore)
Annuity plan for pension
For pension, it is necessary to invest at least 40 percent in annuity plan. You get the remaining amount in lump sum after completion of 60 years. Suppose you invested 50 percent in an annuity plan for higher pension.
Investment in Annuity Plan 50% of Rs 46,03,76,239 = Rs 23,01,88,120
Estimated return on annuity: 7% per annum
Annual interest: Rs 1,61,13,168
Monthly pension: Rs 13,42,764 (about Rs 13.50 lakh)
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How to open account
- First of all go to the official website of NPS or go to NPS Vatsalya platform.
- Select the option to register for a new NPS account.
- Fill the complete details of the parent or guardian like guardian’s name, date of birth, PAN number, mobile number, address proof, email ID etc.
- Fill the necessary information of the minor child in the age group of 0 to 18 years for whom NPS Vatsalya account is being opened.
- Fulfill KYC requirements. Required KYC documents (such as identity and address proof) as per the guidelines.
- Then choose investment options. Then submit the application.
- Note down the approval number or receipt number for future reference.
- Follow any additional instructions provided via email or SMS to complete the registration process.
- Once the application is processed, you will receive confirmation of NPS Vatsalya account opening.
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