National Pension Scheme: If you are also planning your retirement, the government’s National Pension Scheme (NPS) can be the best option.
In this scheme, if you start the suitable investment in time, then after retirement, you can get a pension of up to Rs 50,000 every month sitting at home.
Explain that the government runs the National Pension Scheme for the people working in the private sector.
Investing in this scheme can eliminate money tension in old age.
If a person starts investing money in this scheme from the age of 24, then he can quickly get a pension of 50 thousand rupees per month in retirement.
How can I get a pension of 50 thousand rupees a month?
If you want to get a pension of 50 thousand rupees every month after retirement, you must invest in the National Pension Scheme from the age of 24 years.
You have to invest 200 rupees daily, which becomes 6 thousand rupees monthly. You will invest 72 thousand rupees in this scheme every year.
If you invest in it till the age of 60, i.e. for the next 36 years, the total NPS at maturity will be Rs 2.54 crore, assuming an annual return of 10%.
In such a situation, if you buy an annuity from 40% of your total corpus, then after retirement, you will get a pension of 50 thousand rupees every month.
Low risk, high return:
Explain that National Pension Scheme has less risk than the stock market and mutual funds and more returns than the PPF scheme.
NPS has four asset classes – Equity, Corporate Debt, Government Bonds and Alternative Investments Funds.
Investors have two options to invest money in NPS – Active and Auto Choice. Explain that the investor cannot withdraw their entire cash on maturity.
Instead, he has to invest 40% of the total NPS in buying an annuity plan.
This annuity amount is a regular pension, which the investor will continue to receive every month after retirement.
60% of the total NPS can be withdrawn in lump sum:
Explain that 60% of the unmodified NPS can be removed outright in this scheme. However, if one wishes, some of this can be used to buy more annuities.
Explain that the more money you leave to buy an annuity, the higher will be the pension amount after retirement.
When was the NPS scheme started?
NPS is the scheme through which a pension is given after retirement. This scheme was started in 2004 for all government employees.
However, in 2009 this scheme was opened for all categories of people. Explain that both the employer and the employee invest in the National Pension Scheme.
Under NPS, employees can withdraw 60% of the total accumulated amount at the time of retirement and the remaining 40% amount goes to the pension scheme.
