New Pension System
New Pension System: Money is needed to make money, but it is more important to know where to invest the money so that it can give you good profits. If you want to make money risk free then you have many investment options, one of them is New Pesnion System.
Earn 1 crore by saving Rs 150 per day
You can improve your old age by investing in NPS. Even if you save Rs 150 per day in NPS, you will get Rs 1 crore at retirement. Investing in this is very easy and low risk. However, NPS is a market linked investment.
You can earn huge profits by investing in NPS
NPS is a market linked retirement investment option. Under this scheme, NPS money is invested in two places, equity i.e. share market and debt i.e. government bonds and corporate bonds. You can decide how much of your NPS money will go into equity while opening the account. Usually up to 75% of the money can go into equity. This means that you are expected to get a slightly higher return than PPF or EPF.
We are going to tell you that if you have just started your job, you don’t even have much money to invest, then it doesn’t matter if you save 150 rupees per day and invest in NPS.
Suppose you are 25 years old at this time. If you invest Rs 4500 per month in NPS that is Rs 150 for a day. Will retire after 60 years. If this is assumed, you will invest in it for 35 consecutive years. Now suppose you got a rate of return of at least 8%. So when you retire your total pension assets will be Rs 1 crore.
Age to start investing in NPS
25 years Investment
per month – Rs 4500
Duration of investment – 35 years
Estimated return – 8%
NPS Investment Ledger
Total Invested – Rs. 18.90 lakhs
Total interest earned – Rs. 83.67 lakh
Pension Wealth – Rs. 1.02 Crore
Total Tax Savings- Rs. 5.67 lakhs
How much pension will you get
Now you can’t withdraw all this money at once, you can withdraw only 60 percent of it, remaining 40 percent you have to put in an annuity plan, from which you get pension every month. Suppose you put 40% of your money into an annuity. So you have Rs. 61.54 lakhs in lump sum and assuming interest is 8%, the pension per month is Rs. 27,353 thousand which is different.
Annuity – 40 percent
Estimated Interest Rate – 8% Lump Sum Received –
Rs 61.54 Lakh
Monthly Pension – Rs. 27,353
We started investing here at the age of 25. If you start investing early, your pension corpus is huge. The pension amount depends on the amount you are investing monthly, at what age you started investing and how much return you are getting. The example we have taken here is that of estimated returns. It may be different in each case.