NPS: If you want a lifelong pension, invest here, you will get 45 thousand rupees per month by investing 5 thousand rupees
National Pension System Retirement Planning: After retirement, many people have to face financial crises. The situation gets worse when there is no source of income. The National Pension System (NPS) is a scheme in which after investment, not only a lump sum amount is received but a pension also starts. You can open this account in your or your wife's name so that regular income is received after the age of 60. If you invest 5 thousand rupees per month in it, then you can arrange a pension of about 45 thousand rupees per month for your partner after the age of 60. With this, the wife will not be dependent on anyone for her expenses.
What is the National Pension System Scheme
Under this scheme, any person from 18 years to 60 years can open an account in any bank. A fixed amount is deposited every month till the age of 60. The bank gives annual interest on it. Currently, this interest is 9 to 12 percent per annum according to different banks. Whatever amount is deposited till the age of 60, you can take a maximum of 60 percent of it in a lump sum. You have to take an annuity from the remaining 40 percent. An annuity is the part from which the investor's pension starts. If the investor wants, he can take a pension from the entire amount without withdrawing a single penny from the invested amount.
NPS is a good option for pension.
NPS scheme is a good option for long-term investment. It is considered good for collecting a large fund after retirement and getting a continuous pension. You don't need to open it in your name only. This account can be opened in the name of any member of the family. This account will mature and its benefits will be available only after that person turns 60 years of age. However, if you open this account in the name of your wife, then there is a special exemption for her and she will be able to get its benefits after she turns 65 years of age.
This is how you will get a pension of Rs 45,000 per month
If your wife is 30 years old, then you will have to open this account immediately. You will have to invest Rs 5,000 every month in this account. This investment will have to be made till the age of 60 years of your wife, that is, for the next 30 years. If we assume an average return of 10% per annum on this, then Rs 18 lakh will be invested in 30 years. You will get about Rs 96 lakh as interest on this. In this way, a fund of about Rs 1.14 crore will be collected in 30 years. 60% of this amount, that is, about Rs 69 lakh, will be collected. The remaining 40% amount, that is, about Rs 45 lakh will be annuity. That is, the pension will start from this Rs 45 lakh. This will keep giving a pension of Rs 45,000 throughout life.
Tax facility also
By investing in NPS, you can also get tax exemption. This exemption is as follows:
Under Section 80C of Income Tax, you can get a maximum tax exemption of Rs 1.5 lakh in a year.
If you are employed and your company deposits a maximum of 10% of your basic salary in NPS, it is completely tax-free under 80CCD(2). This exemption is available in addition to 80C.
If you deposit some additional amount in NPS, you get an additional exemption on investment up to Rs 50,000 under section 80CCD(1B).
People coming under the All Citizens Model can avail the exemption on investments up to Rs 50,000 under 80C.
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