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Just postpone NPS for 5 years, and you will get up to 60% more pension, know the complete calculation here


It is very important to do retirement planning and the best instrument for this is NPS. While investing in NPS, people keep in mind how much money they will need when they retire at the age of 60. Here let us tell you that if you postpone your NPS for 5 years, then the pension you get increases by 60 percent.

When you are 60 years old i.e. when you retire, at that time you will have 2 options. The first is that you exit from NPS. In such a situation, you can withdraw 60 percent of the amount and buy an annuity plan with 40 percent. The second option will be that you keep it invested for some time. In such a situation, you will have to keep investing money for the next 5 years as well.

If you invest Rs 2500 every month in NPS from the age of 25, then by the age of 60, you will have Rs 1 crore deposited. If you retire at the age of 60, then you can get a pension of about Rs 58 thousand every month at the rate of about 7 percent on Rs 1 crore. On the other hand, if you continue this investment for 65 years, then your total corpus will be about Rs 1.60 crore. That is, your investment will be 60 percent more.

Those people should pursue their NPS, who want to keep doing something even after retirement. There are many people who even after the age of 60 think that they should work somewhere and should not sit idle. At such a time, if you do not have any responsibility for children's education or marriage, then you can invest some extra amount. This will increase your corpus and you can get more pensions.

Although most people believe that by investing money in NPS, a pension is guaranteed for old age. But do you know that NPS gives you many benefits even in your youth? Keep in mind, these benefits are available separately along with eliminating the worry of money in old age. So let's know what benefits you get from NPS in your youth.

Investment in NPS gives tax exemption under section 80CCD of Income Tax. It also has two sub-sections - 80CCD(1) and 80CCD(2). Apart from this, there is another sub-section of 80CCD(1) which is 80CCD(1B). You can get a tax exemption of Rs 1.5 lakh under 80CCD(1) and Rs 50 thousand under 80CCD(1B). At the same time, apart from this exemption of Rs 2 lakh from 80CCD(2), you can get more exemption in income tax. Under this, you can invest up to 10 percent of your basic salary and dearness allowance in NPS, which is done through the employer. If you are a government employee, then this figure can be up to 14 percent for you.

When a person gets a job, in the initial days everyone spends money here and there. On the other hand, after a few years, everyone starts understanding that to live a better life in old age, it is necessary to invest in youth itself. Although there are many schemes and tools for investment, the biggest advantage of NPS is that you can withdraw the money deposited in it only after retirement. Meaning, its lock-in period is not 5 years or 15 years like other schemes, but up to the age of 60 years. In this way, the investment of the youth remains safe for old age. If the lock-in is less, then many times people use that money to buy a car, house, or in some medical emergency, due to which the security of old age becomes weak.

In all investment schemes, you get either a fixed return or a return over which you have no control. If you invest in NPS, you can decide for yourself how much money you want to invest in the stock market and how much in fixed-return instruments. In youth, one can take more risks. In such a situation, you can get more returns by taking more risk, which will help you in accumulating a large corpus in the coming days. With increasing age, when you feel that you need to take less risk, then change the investment in NPS accordingly, which will benefit you.

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