# NPS: Good News! Get Rs 50,000 pension every month after retirement, Know full details

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NPS Calculator: This is a better scheme to get monthly pension on retirement with crores of corpus. Any Indian citizen between 18 to 65 years can invest in NPS.

NPS Calculator: To live life after retirement stress free, then it is necessary that you should have a source of monthly income for that. Therefore, along with the initial days of the job, retirement planning should also be started. So that you can build a substantial retirement corpus in the long run. National Pension System can be a best option for getting pension every month along with retirement fund. A large retirement fund is also available in lump sum upon retirement on investment in this scheme.

NPS Calculator: Understand Fund Maths
If the average age of the investor is 21 years. In this, he makes a monthly contribution of Rs 4,500. If you join NPS from the age of 21, then you will have to invest in it till the age of 60, that is, for 39 years.

• Monthly investment in NPS: Rs 4,500 (Rs 54,000 per annum)
• Total contribution in 39 years: Rs 21.06 lakh
• Estimated return on investment: 10%
• Total amount on maturity: Rs 2.59 crore
• Annuity purchase: 40%
• Estimated annuity rate: 6%
• Age 60 Pension on: Rs 51,848 per month

(Note: This calculation is an approximate figure. Actual figures may vary.)

1.56 crore will be available in lump sum

In NPS, if you take 40 per cent annuity (the minimum that is required to be kept) and the annuity rate is 6 per cent per annum, then after retirement you will get Rs 1.56 crore in lump sum and 1.04 crore will go into annuity. Now from this annuity amount, you will get a pension of Rs 51,848 every month. The higher the annuity amount, the higher the pension you will get.

NPS: 40% need to buy annuity
Actually, annuity is a contract between you and the insurance company. Under this contract, it is necessary to buy an annuity of at least 40 percent of the amount in the National Pension System (NPS). The higher this amount, the higher will be the pension amount. The amount invested under annuity is received as pension after retirement and the balance amount of NPS can be withdrawn in lump sum.

NPS: Who can invest
In NPS, any citizen of India whose age is between 18 to 65 years can take part in this scheme after some necessary procedures. The responsibility of investing the amount deposited in NPS is given to the pension fund managers registered by PFRDA. They invest your investments in equity, government securities and non-government securities apart from fixed income instruments.

NPS: Benefit of Tax Exemption
Under NPS, under section 80CCD(1B) of the Income Tax Act, you get the benefit of tax exemption on investments up to Rs 50,000. NPS can also help you in extra tax savings if you have completed the limit up to Rs 1.5 lakh under section 80C. Withdrawal up to 60 percent of the amount on maturity of this scheme is not taxed.