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National Pension System: Everyone does future planning. Everyone also looks for a plan for their retirement. But, often people do not know the right tool. If you are worried about your retirement, your wife can solve this problem. If you open this special account in your wife's name then the problem will go away. National Pension System or National Pension Scheme (NPS) is a scheme in which not only you but your wife can also help you in earning money. You can open a New Pension System (NPS) account in your wife's name. The wife will get a lump sum amount from the NPS account at the age of 60 years. Apart from this, you will get the benefit of pension every month. This will be the wife's regular income. The biggest advantage of NPS account is that you can decide yourself how much pension you want every month. With this, there will be no tension regarding money at the age of 60.
Open NPS account in wife's name
You can open a New Pension System (National Pension Scheme) account in the name of your wife. You get the option to deposit money every month or year as per your convenience. You can open an NPS account in your wife's name with just Rs 1,000. NPS account matures at the age of 60 years. Under the new rules, you can continue to operate the NPS account till your wife turns 65 years old.
But, how will you make money from NPS?
Suppose your wife is 30 years old and you deposit Rs 5000 every month in NPS account. Your annual investment will be Rs 60,000. Continue investing for 30 years. Overall your investment will be Rs 18 lakh. But, money will still be made. At the time of retirement, you will have a huge corpus of Rs 1,76,49,569. In this, Rs 1,05,89,741 will be received only from interest. Here we have kept the average interest at 12 percent. Now compounding works. The investment may have been of Rs 18 lakh but compounding made your money reach more than Rs 2.5 crore (Rs 1,76,49,569).
Now understand how the pension formula will be decided?
The biggest advantage of NPS account is that you can decide how much pension you want. When your wife's account matures at the age of 60 years, you will get a lump sum of Rs 1,05,89,741. This is the money that has been earned from interest. Invest the remaining Rs 70,59,828 in annuity plan. We have kept the annuity at a minimum of 40 percent. The annual annuity rate is 8 percent.
A monthly investment of Rs 5000 will create a fund of Rs 1.76 crore.
How much lump sum amount will you get and how much pension will you get? We have calculated this using HDFC Pension's NPS calculator.
– Age- 30 years
– Total investment period – 30 years
– Monthly contribution – Rs 5,000
– Estimated return on investment – 12%
– Total pension fund – Rs 1,76,49,569 (on maturity)
– Annuity plan of Rs 70,59,828 (40%)
– Estimated annuity rate 8%
– Monthly pension- ₹47,066
This scheme is run by the Central Government
NPS is a social security scheme of the central government. The money you invest in this scheme is managed by professional fund managers. The central government gives this responsibility to these professional fund managers. In such a situation, your investment in NPS remains completely safe. However, there is no guarantee of returns on the money you invest under this scheme. According to financial planners, NPS has given an average annual return of 10 to 12 percent since its inception.