NPS Vatsalya: Children's retirement planning starts now...more than 9700 minors joined on the first day

The government has started the NPS Vatsalya scheme to secure the future of children. More than 9700 minors joined this scheme on the first day. Know what is the biggest benefit of this scheme.

NPS Vatsalya: The recently launched NPS Vatsalya scheme has had a great start. On the first day, 9705 minors have been added under this scheme. Finance Minister Nirmala Sitharaman launched this scheme on 18 September 2024. The purpose of this scheme was to start a pension scheme for children. If their parents invest in a retirement scheme instead of children as soon as possible, then they will get the unmatched benefit of compounding. It is being operated by PFRDA. It was announced in the Union Budget 2024-25.

NPS Vatsalya scheme got a good response

In a statement issued by PFRDA, it was said that the NPS Vatsalya scheme has received a good response. Under this, 9705 minor shareholders joined this scheme on the first day. Out of these, 2197 accounts were opened through e-NPS portal. Children who will be enrolled under this scheme will be enrolled for PRAN Cards. This is called the Permanent Retirement Account Number.

Planning for retirement before adulthood

NPS Vatsalya scheme is an important initiative of the Government of India. Under this scheme, planning for the future of children can be done from the very beginning. If retirement planning is done before adulthood, then the unmatched benefit of compounding is available. Let us understand this with an example.

Corpus of 2.4 crores from SIP of only ₹ 2000

Suppose you are 30 years old. As part of retirement planning, you started a SIP of Rs 2000 every month in NPS. Let us assume your average return to be 12%. In such a situation, your corpus at retirement will be a little more than Rs 70 lakh. If you had started planning for this at the age of 25, then with just a SIP of Rs 2000, your retirement corpus would have become Rs 1.3 crore. On the other hand, if you had done this planning at the age of 20, then your corpus would have been Rs 2.37 crore. This will be the biggest benefit in NPS Vatsalya scheme.