NPS: Everyone needs a regular income and a lump sum upon retirement so they can live comfortably for the rest of their lives. However, planning ahead is essential for this.
If you don’t plan properly and at the right time, you may find it difficult to accumulate a substantial pension and a lump sum. In such a situation, the National Pension System (NPS) can be a good option for retirement. If you invest according to a well-thought-out strategy, you can earn a monthly pension of ₹80,000 after retirement.
According to a case study by wealth advisory firm TheFynprint, Ajay, a retired engineer from Vadodara, is doing just that, smartly using the Systematic Lump-Sum Withdrawal (SLW), the least-utilised feature of the National Pension System ( NPS ), reported Business Today. In this, a 60-year-old retired engineer from ONGC took advantage of the post-retirement flexibility of NPS and converted his retirement corpus of Rs 1.2 crore into a disciplined, tax-efficient income stream.
Typically, after retirement, people withdraw their corpus or lock it in fixed deposits, but Ajay took a different approach. In 2020, Ajay transferred his entire PRBS (Post Retirement Benefit Scheme) corpus to NPS. He then continued contributing for five years and created a structured post-retirement plan. He aimed to earn ₹90,000 per month from this plan. Of this, ₹ 50,000 would come from SLW starting in 2026 and ₹ 40,000 from a joint-life annuity.
Earnings come from different sources
Now the most important thing is that his monthly income comes from different sources. 40 percent of it is from SLW, 30 percent from annuity and 30 percent from other sources. This includes SCSS, bank deposits and mutual funds. Ajay says that I got everything I needed from NPS. Ajay manages his income in such a way that he remains in the tax bracket of Rs 12 lakh. If you also want to get a pension of Rs 80,000 per month, then you can definitely consider Ajay’s plan once. This is a low-risk plan.
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