National Pension System: Diwali is the time to spread light and happiness. It's also a good time to make an investment and plan for the future. If you are young, say 25 years old, and recently started working, it's also one of the best times for you to start making an investment that will keep you financially sound in the old age. Pension schemes pay well when you start early investment. The older you grow, the investment amount for higher returns also goes high. 

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At the age of 25, if you start investing just Rs 5000/month in the National Pension System (NPS), you can be assured of around Rs 60,000/month pension after retirement at 60 and also withdraw a lumpsum of Rs 22 lakh, according to online SBI pension funds calculator. You will also save Rs 8,10,000 in income tax during the entire period. 

The underlying assumption here is that the expected rate of return on the NPS investment would be 8 per cent.  This may go up further. Suppose you start investing at the age of 30, you will have to invest around Rs 7500/month in NPS for a monthly pension of Rs 60,000. Hence, it is important to start early. 

You can also plan for a Rs 1 lakh/month pension by investing just around Rs 9,000 per month, starting from the age of 25. During the period of 35 years of investment, you will also make a tax saving of Rs 11,34,000. If you start investing at the age of 30, you will need to invest around Rs 12,500/month for a pension of around Rs 1 lakh/per month. You will also be able to withdraw a lumpsum amount of Rs 37,10,762 after retirement at 60. 

You can make your own calculations here

NPS is regulated by Pension Fund Regulatory & Development Authority (PFRDA). It is one of the most popular pension schemes backed by the government. 

Check  Income per month calculator, maximum age, withdrawal, ITR benefit details here. Any citizen of India, whether resident or non-resident, can subscribe to NPS.