Pension Tips: Know how much pension you will get on retirement if you invest ₹ 5000 monthly in NPS..
It is very important to plan for retirement. Today, we will talk about the best retirement instrument, NPS. Today, we will understand how, if you deposit a little money every month, you will have a regular income even after retirement.
Let us assume that you are 30 years old now and you deposit Rs 5000 every month in the NPS account. In this way, your annual investment will be Rs 60 thousand. In the next 30 years, you will deposit a total of Rs 18 lakh in this way. At the time of retirement, your total corpus will be around Rs 1,13,96,627, out of which Rs 95,96,627 would have been received only from interest.
This is the power of compounding, due to which the money keeps increasing. Now, the question is, if you are investing Rs 5000 every month, then how much pension will you get after retirement? This calculation will help you understand this.
You will get two options on retirement.
When you retire, you will have two options. Either you invest all your money in an annuity plan and start getting a pension from it. Or you withdraw 60 percent of the amount and make an annuity plan with the remaining 40 percent. At least 40 percent of the NPS has to be invested in an annuity plan on retirement. We are assuming that you have an average return of 10 percent on your investment.
How much pension will be made on a 40 percent amount
If you invest 40 percent of your total corpus of Rs 1,13,96,627, i.e., Rs 45,58,650 in annuity, then your pension will be somewhat less. Let us assume that you will get about 7-8 percent annual interest on it. In such a situation, your pension will be around Rs 3,19,105-364,692 annually or Rs 26,592-30,391 monthly.
How much pension will be made on a 100 percent amount
If you invest your entire corpus for a pension, then you will get a very good pension every month. If you get 7-8 percent interest on the total corpus of Rs 1,13,96,627, then your annual pension will be around Rs 797,764-911,730. On the other hand, if you look at it every month, then your pension will be around Rs 66,480-75,977.
Keep some things in mind.
This calculation has been done assuming an ideal situation. Here we are assuming that by the age of 30, the person would have gotten a good job and would have started planning for their retirement. If you want to know the pension according to your requirement, then you can calculate by increasing or decreasing the age on this basis. Remember, the sooner you start investing, the more benefits you will get on retirement.
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