NPS Tips: Now pension will increase by more than 100%, just invest with this strong strategy, know the details..
National Pension System (NPS) is a government scheme, in which you can financially secure your old age through investment. This is a pension plan of the central government, in which investment is made keeping retirement in mind. The entry age in this scheme is 18 years, while the maximum age limit is 70 years. This scheme matures at the age of 60 years, but investment in it can be extended for another 15 years.
Any government employee or private sector employee can open an account in it (retirement planning). If you want more pensions in this, then you will either have to become a subscriber at a young age or extend the investment.
More than a 100 percent increase
Usually, people plan to consider the age of 60 as the retirement age. You may have started the account at the age of 35. If you start it 5 years earlier, then your pension (NPS benefits) can increase by about 50 percent and if you start it 10 years earlier i.e. at the age of 25, then the pension can increase by more than 100 percent. Similarly, if you extend the investment in NPS for 5 years or 10 years, then the pension can increase by more than 50 percent (NPS investment strategy) and 100 percent.
Starting investment as soon as possible is a smart move, but if you started later and want to extend it, then keep in mind that after the age of 60, you should have a source of income (investment strategy) for the number of days you want to extend.
Case 1: Investment at the age of 30
Suppose you have opened an account in NPS at the age of 30 and you deposit Rs 5000 in this scheme every month (NPS account) till the maturity of the scheme i.e. till the age of 60.
Subscriber age: 30 years
Monthly deposit: Rs 5,000
Investment period: 30 years
Total investment till maturity: Rs 18 lakh
Estimated return on investment: 8% per annum
Corpus created in 30 years: Rs 75,01,476 (Rs 75 lakh)
Investment in annuity plan: 50% (TAX benefits in NPS)
Lump sum value: Rs 37,50,738 (Rs 37.50 lakh)
Pensionable wealth: Rs 37,50,738 (Rs 37.50 lakh)
Return on annuity: 8%
Monthly pension: Rs 25,000
Case 2: Investment at the age of 25
Subscriber age: 25 years
Monthly deposit: Rs 5,000
Investment period: 35 years
Total investment till maturity: Rs 21 lakh Rs
Estimated return on investment: 8% p.a.
Corpus generated in 35 years: Rs 1,15,45,876 (Rs 1.15 crore)
Investment in annuity plan: 50%
Lump sum value: Rs 57,01,476 (Rs 57 lakh)
Pensionable wealth: Rs 57,01,476 (Rs 57 lakh)
Return on annuity: 8%
Monthly pension: Rs 38,486
Case 3: Investment at the age of 20
Age of subscriber: 20 years
Monthly deposit: Rs 5,000
Investment period: 40 years
Total investment till maturity: Rs 24 lakh
Estimated return on investment: 8% p.a.
Corpus generated in 40 years: Rs 1,75,71,407 (Rs 1.75 crore)
Investment in annuity plan: 50%
Lump Sum Value: Rs 87,85,703 (about Rs 88 lakh)
Pensionable Wealth: Rs 87,85,703 (about Rs 88 lakh)
Return on Annuity: 8%
Monthly Pension: Rs 58,571
What will be the result
Here, the subscriber who started investing 10 years ago, his pension is Rs 58571 after the age of 60. Whereas the one who started after 10 years, his pension is around Rs 25000. There is a difference of more than double in this (NPS investment plan). While even at the end of 5 years, the pension is increasing by about 50 percent.
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