Although there are many schemes for pension, but in these too the National Pension System (NPS) is in great demand. By investing in this scheme, you can arrange pension for old age. Today we will tell you how by investing Rs 1000 in NPS you can raise Rs 35 lakh for post retirement.
What is the calculation: Suppose you are 26 years old and you are opening an account in National Pension System (NPS). If you invest 1000 rupees every month, it will have to be continued for 34 years. An estimated return of 10 per cent has been kept on this. Let us tell you here that in the last 15 years, Tier-1 NPS account has given an average return of 10 per cent. That is why the expected return is 10 per cent.
If you buy 40 percent annuity on this, then the expected return for this will be 6 percent. Actually, it is mandatory to buy at least 40 percent of the annuity. There is an option to increase it. Any account holder can increase the annuity. After adopting this whole process, the total investment after retirement will be Rs 4 lakh 8 thousand. At the same time, the total amount will be close to Rs 34 lakh 54 thousand. After retirement, the pension amount will be about 7 thousand rupees every month.
In the absence of the NPS Tier-1 account holder, the nominee will get 100% of the investment amount. This means to say that you can arrange 34 lakh 54 thousand rupees for the nominee.
Here are the conditions: No individual is allowed to open more than one NPS account. However, a person can open one account in NPS and another account in Atal Pension Yojana. Any citizen of India (both residential and expatriate) who is in the age group of 18 to 65 years can join NPS. A NRI can also open an NPS account.