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NPS (National Pension System) is a famous government scheme designed by the government to secure the old age of the citizens of India. Through this scheme, you can accumulate a good fund and also arrange a monthly pension for yourself for a long time. NPS was initially launched only for government employees. However, later it was opened to the citizens of the country. Know important information about this scheme and understand how you can get a pension of more than Rs 50,000 per month through this scheme.
What is NPS?
NPS is a market linked scheme where the returns on whatever you contribute are determined by the market. In this scheme, two types of accounts are created, Tier 1 and Tier 2. Anyone can open a Tier 1 account. Tier-2 account can be opened only if you have a Tier-1 account. You can get 60 percent of the total amount invested in NPS after 60 years. That means this amount is like your retirement fund. Whereas you can use at least 40 percent as annuity. You get pension from this annuity. How much pension you will get depends on your annuity.
In this way you can get a pension of more than Rs 50 thousand.
Suppose you start investing in NPS at the age of 35, then you will have to invest in this scheme continuously for 60 years. That means you will invest in this scheme for 25 years. If you want to get a pension of more than Rs 50,000, you will have to invest at least Rs 15,000 per month. According to the NPS calculator, if you invest Rs 15,000 per month continuously for 25 years, your total investment will be Rs 45,00,000. But at the rate of 10 percent the interest on it will be Rs 1,55,68,356.
In this way you will have a total of Rs 2,00,68,356. You can use 40 percent of this amount as annuity. According to this, your annuity will be Rs 80,27,342 and in total you will be given Rs 1,20,41,014. If you get 8 percent return on the annual amount, then you can get a pension of Rs 53,516 per month.