Start investing from ₹1000

According to the NPS Vatsalya calculator, if a parent starts investing from the time of their child’s birth – let’s say the child is born on May 1, 2025 – and puts just ₹1,000 into the scheme every month, this small amount can turn into a huge sum.

Under this scheme, if ₹ 1000 is invested continuously per month for 18 years, the total investment will be ₹ 2,16,000. But assuming 10% annual return, this amount will increase to ₹ 6,01,909.

A fund of Rs 4 crore will be ready.

The NPS Vatsalya scheme also provides an option to withdraw up to ₹2.5 lakh from this fund at the age of 18 and invest the remaining amount in a pension scheme. If the same investment is made continuously till the age of 60, the estimated pension fund can reach ₹4 crore (₹4,00,59,576) – meaning your child can become a millionaire at the age of 60.

Pension will continue to be received

As per NPS rules, you are required to keep at least 40% of the funds reserved for Annuity. With this, you will continue to receive pension on 40% of the money deposited. After 60 years, whatever the rate of annuity is at that time, this money will get interest and will generate pension from it. The remaining 60% of the money can be withdrawn. The funds for annuity can also be increased, due to which the pension amount increases.

(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. rightsofemployees recommends its readers and viewers to consult their financial advisors before making any financial decisions.)

The post NPS Vatsalya Calculator: Your child will become a millionaire! Start investing from Rs. 1000 first appeared on Rightsofemployees.com.

In this article, we will tell you how much monthly pension your child will get if you invest Rs 1000 annually.

Finance Minister Nirmala Sitharaman launched the NPS Vatsalya Scheme on 18 September 2024. This scheme was announced in the general budget. This scheme has been made for children. Under the scheme, parents and guardians will invest every year for the child, the benefit of which will be available to the children after they turn 18 years old. This is a saving-cum-retirement scheme. Actually, in this scheme, children will also get the benefit of pension after their retirement age.

How much will you have to invest every month

There is no maximum investment limit in NPS Vatsalya Yojana, but at least Rs 1,000 must be invested annually. Partial withdrawal facility is also available in this scheme. Apart from this, pension benefits are also available.

Let us tell you that this scheme is designed for children below 18 years of age. Parents or guardians invest in this scheme. But, when the child turns 18, the parents exit the scheme and the fund of NPS Vatsalya is converted into NPS Tier-1.

When does the scheme mature

NPS Vatsalya Fund matures after the child turns 18 years old. If the scheme is to be continued, it can be continued by doing KYC of the child. It works like a normal NPS scheme after the KYC of the child. However, if the entire fund has to be withdrawn after 18 years, then its rules are different.

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If the amount in the fund is less than Rs 2.5 lakh, then full withdrawal is allowed. If the amount is more than Rs 2.5 lakh, the investor can withdraw only 20 per cent and the remaining 80 per cent can be purchased as an annuity, which will be given to the child every month as pension.

Understand the calculation of NPS Vatsalya

Many investors have a question about NPS Vatsalya that how will the investment and interest be calculated in it. If you invest Rs 1,000 annually for your child, you will get a return of about 10 percent every year. According to this calculation, you have invested Rs 2.16 lakh in 18 years. You will get an interest of about Rs 3,89,568 on this investment amount. That is, after the child turns 18, a fund of Rs 6,05,568 will be accumulated.

If the fund is continued even after the child turns 18, then the fund will become worth Rs 3.83 crore at the age of 60.

How much pension will you get

After 60 years, if you buy an annuity plan from the amount of NPS Vatsalya account, it gives 5 to 6 percent interest. In such a situation, after 60 years, the investor will get an annual interest of about 19 to 22 lakh rupees. Talking about pension, about 1.50 lakh rupees can be received every month as pension.

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The post NPS Vatsalya Calculator: How much pension will the child get on depositing Rs 1000 every month, complete calculation first appeared on Rightsofemployees.com.