National Pension System: New Pension System (National Pension Scheme) account can be opened in the name of the wife. As per the convenience, the option of depositing the money every month or annually is available. An NPS account can be opened in the name of the wife even with Rs 1,000.
National Pension System: Everyone does future planning. Everyone also searches for their retirement plan. But, often people do not know the right tool. If you are worried about your retirement then your wife can solve this problem. If you open this special account in the name of your wife, then the problem will be solved. National Pension System or National Pension Scheme (NPS) is one such scheme, in which not only you but your wife can also help in making money. New Pension System (NPS) account can be opened in the name of the wife. NPS account will give a lump sum amount to the wife at the age of 60 years. Apart from this, you will get the benefit of pension every month. This will be the regular income of the wife. The biggest benefit of NPS Account is that you can decide yourself how much pension you want every month. Due to this, there will be no tension of money at the age of 60.
Open NPS account in the name of wife
New Pension System (National Pension Scheme) account can be opened in the name of the wife. As per the convenience, the option of depositing the money every month or annually is available. An NPS account can be opened in the name of the wife even with Rs 1,000. NPS account matures at the age of 60 years. Under the new rules, if you want, keep running the NPS account till the age of the wife is 65 years.
But, how to make money from NPS?
Suppose your wife’s age is 30 years now and you deposit Rs 5000 in NPS account every month. Your annual investment will be 60 thousand rupees. Keep investing for 30 years. Overall your investment will be Rs 18 lakh. But, money will be made now. At the time of retirement, you will have a huge fund of Rs 1,76,49,569 ready. In this, Rs 1,05,89,741 will be available only from interest. Here we have kept the average interest at 12 per cent. Now compounding works. The investment may be 18 lakhs but compounding has taken your money above 1.5 crore rupees (Rs 1,76,49,569).
Now understand how the pension formula will be decided?
This is the biggest benefit of NPS Account that you can decide yourself how much pension you want. When your wife’s account matures at the age of 60, you will get Rs 1,05,89,741 in lump sum. This is the same money which is made from interest. Invest the remaining 70,59,828 in annuity plans. We have kept the annuity as minimum 40% only. The annual annuity rate is kept at 8 percent.
₹ 5000 monthly investment will create a fund of ₹ 1.76 crore
How much lump sum amount will be received and how much pension? We have calculated with the NPS calculator of HDFC Pension.
- Age – 30 years
- Total investment period – 30 years
- Monthly contribution – Rs 5,000
- Estimated return on investment – 12 percent
- Total pension fund – Rs 1,76,49,569 (on maturity)
- Annuity plan of Rs 70,59,828 (40%)
- Estimated annuity rate 8 percent
- Monthly pension – ₹ 47,066
Central government runs the scheme
NPS is the Social Security Scheme of the Central Government. The money you invest in this scheme is managed by professional fund managers. The central government gives this responsibility to these professional fund managers. In such a situation, your investment in NPS remains completely safe. However, the money you invest under this scheme does not guarantee returns. According to financial planners, NPS has given an average annual return of 10 to 12 per cent since its inception.
(Note: Here the calculation of NPS has been done on a general basis. Your total fund will be decided only by your investment and the returns you get. Before investing, take the advice of a financial advisor.)
