Srinagar, Aug 16: National Pension Scheme is one of the state-backed pension schemes that offer impressive returns along with safety on investments. In one such investment option, investors can get Rs 34 lakh at the time of their retirement by investing just Rs 50 per day, which translates into Rs 1500 per month.
For those uninitiated, the National Pension Scheme or NPS is a market-linked retirement oriented investment, in which the managers of the fund invest your money in equity and debt.
How to get Rs 34 lakhs by investing just Rs 50 daily?
Investors who are new to their careers can retire with Rs 34 lakhs in their banks by investing just Rs 50 per day in the NPS. For instance, if you’re 25 years old and invest Rs 1500 per month, you can get Rs 34 lakh at the time of your retirement. However, for such a return you have to invest continuously in the scheme for about 35 years.
Here’s a brief of what your NPS investment could look like:
Age at the time of starting your investment: 25 years
Monthly investment in NPS: Rs 1500
Total investment time: 35 years
Total money that you’ll invest in 35 years: Rs 6.30 lakhs
Total interest you’ll get on your investment: Rs 27.9 lakhs
Total wealth at pension: Rs 34.19 lakhs
Total tax savings: Rs 1.89 lakhs
How much money will you receive at the time of retirement?
At the time of retirement or when you turn 60 years, you will be able to withdraw up to 60% of your total corpus with the NPS. This means that you can withdraw up to Rs 20.51 lakh at the time of retirement.
The rest of the money is put in an annuity investment scheme that offers you a monthly pension. In this case, you’ll receive a monthly pension of about Rs 9000 per month if the interest rate offered by the government remains around 8%.
You cannot withdraw all this money at once. NPS allows its subscribers to withdraw 60% of it. The remaining 40% will be put in the annuity. So you will be able to withdraw a lump sum of Rs 20.51 lakh and assume that if the interest is 8%, then the pension will be 9 thousand rupees every month.