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NPS Return: Follow this strategy at the age of 30, by saving Rs 100, pension and retirement worries will be removed

NPS Calculator: In the case of returns, NPS is currently seen to be overshadowing PPF. In such a situation, if the investor has the ability to take a little risk, then NPS can become a better option for them. Retirement funds can be prepared in NPS with the right combination of risk and returns.

New Delhi. The National Pension System (NPS) scheme is giving a tough competition to the Public Provident Fund (PPF) in terms of returns. Investors are now paying special attention to their retirement funds and they are also ready to take risks for this. For investors who are ready to take some risk, NPS account is proving to be a better option than PPF account. Experts also say that there is no risk of investing in PPF, but NPS scheme is a kind of market linked scheme and its contribution goes in both debt and equity mode.




These experts say that under NPS, investors get an option to choose the ratio of equity and debt investment. If investors want, they can also invest in 75% equity mode. However, usually most investors recommend investing in the ratio of 60: 40, given the risk factor and the possibility of better returns.How to expect 10 percent annual return

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If you look at the ratio of 60: 40, then you can expect a return of 12 percent on it in the long term. Whereas, flat 8% will be available in debt. On this basis, an investment of 60 percent in equity mode will give 7 percent return in 30 years. Whereas in debt mode it will be around 3 percent. Thus the total NPS return will be up to 10 percent.




Buy annuity with 40 percent balance

After this, when the investor reaches the age of retirement, he can withdraw 60 percent of his total NPS balance. Annuity can be purchased from the remaining 40 percent balance. The amount of annuity can be received as pension. The returns received on this will determine the amount of pension. One can expect a return of about 6-7 per cent on this annuity.

calculus?

If calculating according to this strategy, then lumpsum of Rs 41,02,786 can be collected with an investment of Rs 3 thousand per month for 30 years. With this, a pension of Rs 13,676 will also be available. Understand in simple language, if a person invests 100 rupees every day, then he can secure financial life to a great extent after retirement. The annuity in the above calculator has been taken at 40 percent and the net return on it at 6 percent annually.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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