The NPS account will give a lump sum amount to your wife at the age of 60. Apart from this, you will get the benefit of pension every month. This will be your wife’s regular income. The biggest benefit of the NPS account is that you can decide yourself how much pension you want every month. Your wife will not face any shortage of money at the age of 60.

Open NPS account in wife’s name

You can open a New Pension System (National Pension Scheme) account in the name of your wife. You have the option of depositing money every month or yearly as per your convenience. You can open an NPS account in the name of your wife with just Rs 1,000. The NPS account matures at the age of 60 years. Under the new rules, if you wish, you can continue running the NPS account till your wife turns 65 years old.

A fund of ₹1.14 crore will be created by investing ₹5000 monthly

Understand this with an example- Your wife is 30 years old and you invest Rs 5000 every month in her NPS account. If she gets 10 percent annual return on the investment, then at the age of 60, she will have a total of Rs 1.12 crore in her account. She will get around Rs 45 lakh out of this. Apart from this, she will start getting pension of around Rs 45,000 every month. She will keep getting this pension for life.

How much will be the lump sum amount and how much pension

Age- 30 years Total investment period- 30 years Monthly contribution- Rs 5,000 Estimated return on investment- 10% Total pension fund- Rs 1,11,98,471 can be withdrawn on maturity Rs 44,79,388 Amount to buy annuity plan: Rs 67,19,083 Estimated annuity rate: 8% Monthly pension- Rs 44,793.

Also Read: All You Need to Know About the Unified Pension Scheme

Fund managers do account management

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 is completely safe. However, the return on the money you invest under this scheme is not guaranteed. According to financial planners, NPS has given an average return of 10 to 11 percent annually since its inception.

Get the benefit of additional tax exemption

National Pension System (NPS) also offers tax benefits such as tax exemption up to Rs 2 lakh and tax exemption on withdrawal of 60% of the amount. NPS is a scheme in which after the limit of Rs 1.5 lakh is exhausted, tax exemption is also available on additional investment of Rs 50 thousand. Due to this extra exemption, you can save up to Rs 2 lakh tax every year in NPS.

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Means people will not get this scheme from April 1, 2023, the new financial year. LIC is running Pradhan Mantri Vaya Vandana Yojana (PMVVY). Under the PMVVY scheme, the Government of India provides pension facilities to senior citizens of 60 years of age. The central government led by PM Narendra Modi had revised the PMVVY scheme in 2020.

Maximum investment can be made in PMVVY

Under the Revise PMVVY scheme, senior citizens can currently invest in the policy up to a maximum of Rs 15 lakh. An annual interest of 7.4% is available on purchasing the policy. If you buy a PMVVY policy for Rs 15 lakh, it will pay you 7.4% i.e. a 10 year policy and will give you Rs 1.1 lakh as interest at the end of the year. You can invest a minimum of Rs 1,56,658 in this.

This is the minimum pension

Rs 1,000 per month

Rs 3,000 per quarter

Rs 6,000 per half year

Rs 12,000 per annum

Maximum PMVVY Pension

Rs 9,250 per month

Rs 27,750 per quarter

Rs 55,500 per half year

Rs 1,11,000 per annum

You can invest minimum and maximum

For annual pension, a minimum of Rs 156,658 and a maximum of Rs 14,49,086 can be invested.

For half yearly pension minimum Rs 159,574 while maximum Rs 14,76,064 will have to be invested.

For quarterly pension, you can invest a minimum of Rs 161,074 and a maximum of Rs 14,89,933.

You can invest a minimum of Rs 162,162 and a maximum of Rs 15,00,000 for monthly pension.

Last date to apply in PMVVY scheme

The last date to apply for LIC PMVVY scheme is March 31, 2023.

Should You Apply?

PMVVY is a good scheme for senior citizens to get pension with the option of taking money monthly, quarterly, half-yearly and annually. This scheme gives an interest of 7.4%. Getting money in this scheme starts only after one month of investment. This policy is for 10 years. You get the policy money back after 10 years.

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