National Pension System: The more amount you need till retirement, the sooner you have to start investing in NPS.
New Delhi: National Pension System: If you want to become a millionaire, then there are many ways, you can buy mutual funds, invest money in the stock market. But if you do not have enough time to track the stock, then the easiest way is to choose an investment option which is also market linked and your headache is not too much. So you can think about National Pension System (NPS). Also Read: RBI gave a big gift to the bank employees! Now every year 10 days surprise holiday will be available; Learn How?
Investing in NPS will make you a millionaire
NPS is a market linked retirement oriented investment option. Under this scheme, NPS money is invested in two places, Equity i.e. Stock Market and Debt i.e. Government Bonds and Corporate Bonds. You can decide how much of NPS money will go into equity only during account opening. Usually up to 75% of the money can go into equity. This means that in this you are expected to get slightly higher returns than PPF or EPF. Also Read: LIC policy rules: Life insurance policy nominee benefits, how to change your nominee
Scenario No. 1
Now if you want to become a millionaire through NPS, then its method is very easy, just a little trick is needed. Suppose you are 25 years old at this time. If you invest Rs 5400 per month in NPS, that is, Rs 180 per day. 60 years is your retirement period. That is, you will invest in it for 35 years. Now suppose you got a return at the rate of 10%. So when you retire, your total pension wealth will be 2.02 crores. Also Read: Post office saving schemes rules Change for ppf transaction and withdrawal limit
Start investing in NPS
Age 25 Years
Investment per Month Rs 5400
Investment Duration 35 Years
Estimated Return 10%
Book keeping of NPS Investments
Total invested Rs 22.68 lakh
Total interest received Rs 1.79 crore
Pension wealth Rs 2.02 crore
Total tax saving Rs 6.80 lakh
How much pension will you get
Now you cannot withdraw all this money at once, you can withdraw only 60 percent of it, the remaining 40 percent you have to put in an annuity plan, from which you get pension every month. Suppose you put 40% of your money in an annuity. So you will be able to withdraw a lump sum amount of Rs 1.21 crore and assuming the interest is 6%, then every month pension will be 40 thousand rupees, that is different. Also Read: RBI’s new rule: If there is no cash in the ATM, then the bank will be fined, will be applicable from October 1
pension account
Annuity 40 percent
Estimated interest rate 6 percent
Lump sum amount received 1.21 crore
Monthly pension Rs 40,477
Scenario No. 2
Just keep in mind that the sooner you start investing in NPS, the more lump sum amount you will get and the pension will be more. If you start investing in NPS at the age of 30, then see how much pension will be generated. Also Read: Cheque Bounce Notice! You only get one month’s deferment, do this work to survive
Start investing in NPS
Current Age 30 Years
Investment Every Month Rs 5400
Investment Tenure 30 Years
Estimated Return 10%
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