How much do you need to invest in NPS at age 30 to receive a pension of ₹50,000? See the calculation.

NPS Pension Calculation: Starting NPS at age 30 makes retirement planning easier. By investing at the right time, you can secure a monthly pension of ₹50,000.

NPS Pension Calculation: At age 30, most people are at a stage in their career where their income becomes stable, and they start thinking seriously about future planning. This is the age when retirement planning should begin, which can significantly reduce financial worries later in life.

Today, NPS (National Pension System) is considered a strong option for long-term investment. The most common question is: how much do you need to invest at age 30 to receive a monthly pension of ₹50,000 after retirement? Let's look at the calculation.

How much fund is needed for a monthly pension of ₹50,000?

If you want a monthly pension of ₹50,000 after retirement, the annual pension would be approximately ₹6 lakh. In NPS, 40 per cent of the total accumulated amount at retirement is mandatorily invested in an annuity. Assuming an average annual return of 6 per cent from the annuity, you would need a fund of approximately ₹1 crore in the annuity to receive a ₹6 lakh annual pension.

This means that your total NPS corpus at the time of retirement should be approximately ₹2.5 crore, so that 40 per cent goes into the annuity and the remaining amount can be withdrawn as a lump sum. This calculation is based on long-term average returns and current rules. Therefore, these figures may vary slightly.

How much do you need to invest every month starting at age 30?

After determining the required fund, the next question is how much you need to invest every month starting at age 30. Let's assume you retire at age 60, meaning you have approximately 30 years. Assuming an average annual return of 9 to 10 percent from NPS... So, to build a corpus of ₹2.5 crore, you might need to invest approximately ₹12,000 to ₹14,000 every month. If you gradually increase your investment amount each year, for example, by increasing your contribution as your salary increases, the initial burden can be even lower. The real advantage here is time. The earlier you start, the smaller the amount you'll need to invest to build a large fund.