The need for financial security after retirement is crucial, particularly for individuals working in the private sector.
To address this concern, the National Pension System (NPS) emerges as a valuable solution, enabling individuals to establish a retirement fund ranging from Rs 2 crore to Rs 6 crore.
Notably, NPS not only facilitates the creation of a substantial retirement corpus but also provides attractive tax-saving benefits.
By ensuring a fixed monthly pension or adequate funds upon retirement, it effectively alleviates financial worries during the golden years.
Remarkably, some NPS funds have even achieved double-digit returns, surpassing the 10% mark.
Example: Prominent NPS Fund Managers Deliver Impressive Returns
Since its inception in 2009, SBI Pension Fund has delivered commendable annualized returns of 10.43%.
Similarly, HDFC Pension Fund has topped the charts with the highest return of 14.14% since August 2013.
LIC Pension Fund, on the other hand, has provided returns of 12.24% to date. Other fund managers like UTI SRL,
ICICI Pension Fund, Kotak Pension Fund, and Birla Pension Fund have also generated returns exceeding 11% since their inception.
Long-Term Benefits: NPS Subscribers Reap Rewarding Returns
NPS subscribers stand to gain substantial returns over the long term. On average, the return hovers around 10%.
A monthly investment of Rs 5,000 can potentially accumulate a wealth of Rs 1.89 crore, Rs 1.13 crore, or Rs 66 lakh over 35 years, 30 years, or 25 years, respectively.
By increasing the monthly investment to Rs 10,000 or Rs 15,000 over a 35-year period, individuals can earn Rs 3.8 crore or Rs 5.69 crore, respectively.
Additionally, NPS also offers the option of receiving a regular pension.
