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NPS Pension Calculator: After retirement, your life often does not remain the same as it was during your job. You have a lot of time, but neither your body is able to work that hard nor your income is very good. Especially for those doing private jobs, there is no source of income after retirement. In such a situation, it is very important to do retirement planning for yourself in time. If you have delayed in this, then do not think too much now and start planning for a good income for your old age.
NPS i.e. National Pension System can prove to be a better scheme in this matter. This is a government scheme which is market linked i.e. its returns are based on the market. This scheme is very popular in terms of retirement planning because it provides for your pension along with a lump sum amount. Let us tell you that if you start investing in NPS at the age of 40, then how much will you have to invest every month to get a pension of Rs 50,000?
How is your pension made?
Any person between the age of 18 to 70 years can contribute to NPS. Whatever contribution you make in NPS, that money is divided into two parts. After retirement, you can withdraw 60% of the total corpus as a lump sum and 40% goes in annuity, which forms your pension. The Pension Fund Regulatory and Development Authority (PFRDA) administers the scheme.
How will you get a pension of Rs 50,000 if you start investing at the age of 40?
If you are investing in NPS at the age of 40 with the hope that after retirement you will get at least Rs 50,000 as pension, then you will have to invest a good amount in it. You have to invest at least Rs 15,000 every month at the age of 40. You will have to continue this investment for at least 65 years, that is, you will have to keep investing Rs 15,000 for a total of 25 years.
In this case your total investment will be Rs 45,00,000. If you get interest at the rate of 10 percent on this, then you will get Rs 1,55,68,356 from interest. In this case, the total amount will be 45,00,000 + 1,55,68,356 = 2,00,68,356. You will get 60 percent of Rs 2,00,68,356 i.e. Rs 1,20,41,013 in lump sum and you will have to invest 40 percent of the amount i.e. Rs 80,27,342 in annuity. If you assume 8 percent return on your annuity investment, then accordingly you will get Rs 53,516 as pension every month.