National Pension System: You can take 60 percent of the total amount invested in NPS in lump sum after turning 60, while at least 40 percent has to be used as annuity. You get pension from this annuity.
National Pension System, known as NPS, is a government scheme. Despite being market linked, this scheme is considered quite good. Through NPS, you can add a substantial fund during your retirement, and can also arrange for pension every month in old age. There are two types of accounts, Tier 1 and Tier 2. Any person can open a Tier 1 account, but a Tier-2 account can be opened only if you have a Tier-1 account.
You can take 60 percent of the total amount invested in NPS in lump sum after turning 60, while at least 40 percent has to be used as annuity. You get pension from this annuity. If you are also thinking of investing in NPS, then know how much you will have to invest in this scheme every month to get a pension of more than Rs 50,000.
In this way you will get more than Rs 50 thousand pension
Suppose you start investing in NPS at the age of 35, then you will have to invest in the scheme continuously for 60 years i.e. you will have to invest in the scheme for 25 years. To get more than Rs 50 thousand pension every month, you will have to invest at least Rs 15,000 every month. According to NPS Calculator, if you invest Rs 15,000 per month continuously for 25 years, then your total investment will be Rs 45,00,000. But at the rate of 10%, the interest on it will be Rs 1,55,68,356.
In this way you will have a total of Rs 2,00,68,356. If you use 40 percent of this amount as annuity, then according to 40 percent, Rs 80,27,342 will be your annuity and you will get Rs 1,20,41,014 as lump sum. If you get up to 8% return on the annuity amount, you will get a pension of Rs 53,516 every month.
