National Pension Scheme: Your retirement funds may be devoured by inflation like a termite mound as the price of commonly used goods rises on a daily basis. It is always more convenient to receive a monthly payout into your bank account to supplement your retirement funds. Do you worry about the costs of ageing? Continue reading to find the solution to your problem.
The government-sponsored equity-linked National Pension Scheme is one of the best and safest solutions for the aforementioned goals (NPS). The government created this pension-cumulative investment framework to provide stability for its citizens as they age. The NPS offers an appealing long-term saving channel for efficiently preparing for retirement, with safe and regulated market-based returns.
The plan employs both equity and debt instruments. Using NPS, you can save up to Rs 2 lakh in taxes per year.
A 40-year deposit of Rs 5000 per month can earn you Rs 1.91 crores. If you decide to invest the maturity money, you will receive a monthly pension of 2 lakh rupees. The monthly pension referred to above is calculated as Rs 1.43 lakh from the return and Rs 63,768 from the Systematic Withdrawal Plan. As long as the investor is alive, he or she will receive a monthly pension of Rs 63,768.
If the investor invests Rs. 5000 per month for 20 years, he or she will receive a lump sum maturity payment of Rs. 1.27 crores. After investing the maturity amount, you can receive a monthly pension of Rs 63,768 with a 6% return.