New Delhi. Now you have a lot of options to prepare for retirement. These include mutual funds, FD, LIC’s numerous plans and post office schemes. But there is another option, in which you can get a hefty pension every month after retirement. This is the National Pension Scheme (NPS). You can also open this account in PNB, the second largest government bank in the country. This will give you a monthly pension of Rs 30000 every month after the age of 60 years. NPS was started from January 2004 for government employees. Later in 2009 it was started for all categories of people. Let’s know how you can get a monthly pension of Rs 30000 every month after opening an NPS account with PNB.
Benefits of opening an NPS account in PNB
You will have 4 other big benefits of opening an NPS account in PNB. These include the benefits of a portable account, the benefit of customized investment, the convenience of a low cost structure and the option to invest till the age of 70 years. There are two types of accounts in NPS. Let’s know about both types of accounts.
Know about both accounts
There will be two types of accounts in NPS. These include Tier-I and another Tier-II. Of these, Tier-I is a retirement account. It is mandatory to open this account by every government employee. Tier II is a voluntary account. Any person getting this salary can open it and start investing. Also, there is the facility to withdraw money from it anytime.
Know the age rule
People of all ages cannot invest in NPS. Rather it is necessary to be at least 18 years of age to invest in NPS. The maximum investment age in NPS is 60 years. Now know how to get 30 thousand rupees every month.
Get 30 thousand rupees every month
If you start investing at the age of 30, then you will have 30 years to continue investing for 60 years. If you get Rs 5,000 every month in NPS
If you invest Rs. 30, your total contribution will be Rs. 18 lakhs. Here, the estimated return on investment assumes 10 per cent. Thus the total amount at maturity will be Rs 1.13 crore. Out of this, an annuity of 40% will be procured, which is necessary. Annuity rate can be (approximate) 8%. In this way the tax free withdrawal amount will be 60% of the maturity amount. Now you will start getting a pension of Rs 30,391 every month at the age of 60 years.
Also read: EPFO: UAN Status, Passbook, and Account Balance
Tax rebate
NPS is included in those schemes where tax rebate is available for contributions up to Rs 1.5 lakh per annum. In addition to NPS, the options that get tax rebate up to Rs 1.5 lakh per annum are life insurance premiums, Public Provident Fund (PPF), National Savings Certificate (NSC) and Equity Linked Savings Scheme (ELSS).
