Investment Planning via NPS Vatsalya: How to take retirement corpus to Rs 40.9 crore from Rs 8.3 crore with this step; see calculations
NPS Vatsalya vs NPS: Parents/guardians on behalf of minors/children in the 0-18 year age group can open an account. The account will be opened in the name of the minor, and a PRAN number will also be issued to him.
NPS Vatsalya vs NPS: Recently, the government launched NPS Vatsalya for minors in the age group of 0-18 years. National Pension System (NPS), which was started in 2004 for government employees, was later extended to all citizens in 2009. In July 2024, the finance minister announced a special NPS scheme for minors, called NPS Vatsalya. In this write-up, know the salient features of NPS Vatsalya, and through expert calculation, see how Rs 5,000 monthly investment for 13 years more can help one generate an extra NPS retirement corpus of Rs 32.6 crore.
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NPS Vatsalya: Who can open account
NPS Vatsalya Scheme: What are required documents
NPS Vatsalya Scheme: What is the minimum investment?
NPS Vatsalya Scheme: Places where account can be opened
NPS Vatsalya Scheme: What are investment choices?
NPS Vatsalya Scheme: What are investment choices?
NPS Vatsalya Scheme: Can one withdraw corpus?
NPS Vatsalya Scheme: What will happen at 18 years of age?
NPS Vatsalaya Scheme: How you can generate Rs 32.60 crore extra fund with Rs 5,000/m NPS contribution?
According to Max Life Pension Fund Management, if one starts a Rs 5,000 monthly contribution in NPS Vatsalya at age 5 and contributes till 60 (for 55 years total), at a 13 per cent annualised return, they can generate an estimated corpus of Rs 40.9 crore. The invested amount in 55 years will be Rs 33 lakh.
NPS Vatsalaya Scheme: How you can generate Rs 32.60 crore extra fund with Rs 5,000/m NPS contribution?
In the second scenario, another person who invests Rs 5,000 monthly from the age of 18 to 60, their expected corpus at 13 per cent annualised return will be Rs 8.3 crore. The invested amount in that period will be Rs 25.20.
Thus, we see that by staying in investment for 13 years more, one can generate a corpus of Rs 32.60 crore extra with investing just Rs 7.80 lakh more.