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Increase in contribution limit in NPS: On Tuesday, July 23, the first full budget of the NDA government was presented. In this budget, some changes were also announced in NPS. According to the new rule, under the National Pension System, now employers will deduct up to 14 percent instead of 10 percent from the basic salary of the employees. That is, employed people who used to contribute 10 percent in this scheme till now, will now have to contribute 14 percent. How will this affect them? Let us understand the calculation for a salary of Rs 50,000.
How much contribution will have to be made on a salary of 50,000
Suppose your salary is Rs 50,000, then now you will have to contribute Rs 7,000 every month to NPS at the rate of 14 percent, whereas earlier you used to contribute Rs 5,000 at the rate of 10 percent. In this way, an additional burden of Rs 2,000 will come on you. However, if you look at it from a future perspective, then it is beneficial for you. If you contribute more, you will be able to accumulate more funds on retirement and will also get more pension. However, you may face some challenges in managing the monthly budget because the necessary expenses of the middle class are met from their salary. In such a situation, you may need to manage your expenses.
If you contribute 14% every month on a salary of Rs 50,000, how much money will you get on retirement and how much at the rate of Rs 7,000
Will I get pension? This question is bound to come to mind. Understand it through calculation- Suppose you are 28 years old and your salary is Rs 50,000. You invested Rs 7,000 every month in this scheme at the rate of 14 percent and continued this investment till the age of 60. In this case, your total investment in 32 years will be Rs 26,88,000.
If you calculate according to 10 percent return, then your total amount will be Rs 1,96,58,348. You will get 60 percent of this amount as retirement fund. In this case, 60 percent of Rs 1,96,58,348 i.e. Rs 1,17,95,008 will be given to you as retirement fund at the age of 60. Out of this, 40 percent i.e. Rs 78,63,340 will go into annuity. If you calculate assuming 6 percent annuity rate, then at the age of 60, you will get Rs 39,317 every month as pension.