NPS Scheme: Invest ₹10,000 Annually and Build a ₹11 Crore Retirement Fund – Here's How!

The National Pension Scheme (NPS) is an excellent long-term investment option for securing your retirement or creating a robust financial corpus for your child’s future. Here’s a simple breakdown of how small investments in the NPS Vatsalya Yojana can grow into a significant retirement fund.

What is NPS Vatsalya Yojana?

• This scheme allows parents to invest in their child’s name for long-term financial planning.
• Managed by the Pension Fund Regulatory and Development Authority (PFRDA), it promotes early savings for children’s future needs like education, marriage, or business.

How Does It Work?

1. Start Early

   • Open an account for your child (below 18 years).
   • Convert it into a regular NPS account when the child turns 18 or withdraw as per rules.

2. Flexible Investments

   • Minimum annual contribution: ₹1,000.
   • No upper limit on contributions.

3. Partial Withdrawals

   • After three years, withdraw up to 25% of the corpus for education, treatment, or critical needs.

4. Reinvestment Rules

   • Upon maturity, 80% of the corpus is reinvested in an annuity plan.
   • Withdraw up to 20% as a lump sum.

How ₹10,000 Can Grow Into ₹11 Crore?

Assumptions for Calculation:

• Investment: ₹10,000 per year.
• Duration: From age 18 to retirement (60 years).
• Rate of Return (RoR): 12.86% (historical average based on 75% equity and 25% government securities).

Growth Over Time:

Age	Corpus Value at Different RoRs
18	₹5 Lakh (10% RoR)
60	₹2.75 Crore (10% RoR)
60	₹5.97 Crore (11.59% RoR)
60	₹11.05 Crore (12.86% RoR)

Note: Figures are estimates based on historical returns and may vary depending on market conditions.

Key Benefits of the NPS Vatsalya Scheme

1. Tax Savings: Contributions are eligible for tax deductions under Section 80C and 80CCD.
2. Wealth Creation: Offers high returns through equity allocation for long-term growth.
3. Financial Security: Ensures a stable retirement fund or support for children’s future.

Who Should Opt for NPS Vatsalya?

• Parents planning for their child’s future education or marriage.
• Individuals aiming to create a significant retirement corpus with disciplined investments.

Take the First Step Today!

Secure your future or your child’s financial goals with NPS Vatsalya Yojana. Small, consistent contributions can grow into a massive fund over time. Start now and reap the benefits later!