Rs 1 lakh pension per month: How to get Rs 1 lakh monthly pension by investing in NPS? Know the calculation
How to get Rs 1 lakh rupees as pension per month? NPS (National Pension System), a market-linked defined contribution scheme helps one save for his/her retirement.
)
12:32 PM IST
NPS pensions after retirement, Rs 1 lakh pension per month:Â How to get Rs 1 lakh rupees as pension per month? NPS (National Pension System), a market-linked defined contribution scheme helps one save for his/her retirement. NPS is one of the most efficient ways of boosting your retirement income and saving tax. NPS helps an individual plan for a financially secure retirement with systematic savings in a planned way.
Retirement planning is a vital part of financial decision-making. As time passes, inflation also rises, and subsisting only on savings might need to be revised for you after retirement.
Since NPS provides compounding returns, a long investment period will grow your income faster.
NPS: How to get Rs 1 lakh rupees as pension per month?
If an individual starts to invest Rs 8,700 per month in NPS at the age of 21 and invests for the next 39 years, he/she will end up generating a pension of over Rs 1,00,000 per month by the retirement age of 60 years.
How much to invest in NPS to get a Rs 1 lakh pension per month?
Here's the calculation:
Age: 21 years
Retirement age: 60
Contribution: Rs 8,700/month
Expected Return: 10%
The individual will end up with a total corpus of Rs 5,01,19,582.
If you take out the lumpsum of 60 per cent from that corpus (60 per cent is the maximum limit you can withdraw at retirement age), in that case, you will be left with an annuity of 40 per cent.
The government invests annuities in debt funds or corporate bonds where the invested amount generates a fixed income. If you get a six per cent return on an annuity, then-Â Â
The amount invested in the annuity will be Rs 30,07,1749.
Expected monthly pension: Rs 1,00,239 per monthÂ
Source: NPS Calculator
(Disclaimer: Investments in NPS are subject to market risks. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
For all other news related to business, politics, tech and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
)
)
)
)
)
)
Central Govt Pensioners: Retired NPS subscribers with 10 years of service can claim additional benefits under UPS; check last date to apply, claim process
NPS Calculation: How can you get Rs 1 lakh pension with just Rs 5,000 monthly investment?
NPS Calculation: How much should you invest monthly at 25 to retire with Rs 1 lakh pension?
UPS may be replicated to other stakeholders of NPS: DFS Secretary 
Unified Pension Scheme (UPS) Rules From April 1: PFRDA notifies operational guidelines—5 things to know
