There are many schemes in the market for pension. However, the National Pension System (NPS) is in great demand. By investing in this scheme, pension can be arranged for the future. In this report, you will know how you can earn around Rs 35 lakh post retirement by investing Rs 1,000 in NPS.
Accounts:
Suppose you are 26 years old and have opened an account in National Pension System (NPS). If you invest Rs 1,000 every month, it will continue for 34 years. It will give a return of about 10 percent. Tier-1 NPS account has given an average return of 10 per cent in the last 15 years. As a result, the expected return is being kept at 10 per cent.
If you buy a 40 percent annuity on it, the expected return will be 6 percent. In fact, at least 40 percent of the annuity must be purchased. But there is an option to increase it. Any account holder can increase the annuity. If this entire scheme is adopted, then after retirement the total investment will be Rs 4 lakh 8 thousand. At the same time, the total amount will be around 34 lakh 54 thousand rupees. After retirement, the amount of pension will be around Rs 6,000 per month.
In the absence of an NPS Tier-1 account holder, the nominee will receive 100% of the investment amount. This means that you can also provide old age security of Rs 34 lakh 54 thousand to the nominee.
Conditions include:
No one can open more than one NPS account. However, a person can open one account in NPS and another account in Atal Pension Yojana. Any Indian citizen between the age of 18 to 65 years (both resident and expatriate) can join NPS. NRI can also open NPS account.
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