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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, then 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 such a scheme, in which not only you but also your wife can 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 at the age of 60 from the NPS account. Apart from this, you will get the benefit of pension every month. This will be the wife's regular income. The biggest advantage of the NPS account is that you can decide for yourself how much pension you want every month. This will not cause tension about 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 your wife's name. You get the option of depositing 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. The NPS account matures at the age of 60 years. Under the new rules, you can continue to run the NPS account till your wife turns 65.
But, how will you make money from NPS?
Suppose your wife is 30 years old now and you deposit Rs 5000 every month in the NPS account. Your annual investment will be Rs 60,000. Continue investing for 30 years. Overall your investment will be Rs 18 lakh. But, the money will be made now. At the time of retirement you will have a big fund of Rs 1,76,49,569. Out of this, Rs 1,05,89,741 will come from interest alone. Here we have kept the average interest at 12 percent. Now compounding works. The investment may be Rs 18 lakh but compounding has made your money more than Rs 2.5 crore (Rs 1,76,49,569).
Now understand how the pension formula will be decided?
The biggest advantage of an NPS account is that you can decide how much pension you want. When your wife's account matures at the age of 60, you will get a lump sum of Rs 1,05,89,741. This is the same money earned from interest. Invest the remaining Rs 70,59,828 in an annuity plan. We have kept the annuity at a minimum of 40 per cent. The annual annuity rate is 8 per cent.
A fund of Rs 1.76 crore will be created by investing Rs 5000 per month
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 is completely safe. However, there is no guarantee of return on the money invested by you under this scheme. According to financial planners, NPS has given an average return of 10 to 12 percent annually since its inception.