Money is needed to earn money, but it is more important to know where to invest the money so that it can give you good profits. If you want to earn money by staying risk free then you have many investment options, one of them is New Pesnion System.

Earn 1 crore by saving Rs 150 daily

You can improve your old age by investing in NPS. Even if you save Rs 150 a day in NPS, you will get Rs 1 crore at the time of retirement. Investing in this is absolutely easy and low risk. Although NPS is a market linked investment.

You can earn huge profits by investing in NPS

NPS is a market linked retirement oriented investment option. Under this scheme, NPS money is invested in two places, Equity i.e. share market and Debt i.e. government bonds and corporate bonds. You can decide how much of NPS money will go into equity only during account opening. Usually up to 75% of the money can go into equity. This means that in this you are expected to get slightly higher returns than PPF or EPF.

We are going to tell you that if you have just started a job, you do not even have much money to invest, then it does not matter if you save Rs 150 per day and invest in NPS.

Suppose you are 25 years old at this time. If you invest Rs 4500 a month in NPS, that is, Rs 150 for a day. Will take retirement after 60 years. If this is assumed, then you will invest in it for 35 consecutive years. Now suppose that you got returns at the rate of at least 8%. So when you retire, your total pension wealth will be Rs 1 crore.

Start investing in NPS

Age 25 Years
Investment per Month Rs 4500
Investment Tenure 35 Years
Estimated Return 8%

Bookkeeping of NPS Investments

Total invested Rs 18.90 lakh
Total interest received Rs 83.67 lakh
Pension wealth Rs 1.02 crore
Total tax saving Rs 5.67 lakh

how much pension will you get

Now you cannot withdraw all this money at once, you can withdraw only 60 percent of it, the remaining 40 percent you have to put in an annuity plan, from which you get pension every month. Suppose you put 40% of your money in an annuity. So you will be able to withdraw a lump sum amount of Rs 61.54 lakh and assuming the interest is 8%, then every month pension will be Rs 27,353 thousand that is different.

pension account

Annuity 40 percent
Estimated interest rate 8 percent
Lump sum amount received Rs 61.54 lakh
Monthly pension Rs 27,353

We have started investing here at the age of 25. If you start investing early then your pension corpus is huge. The amount of pension depends on the amount you are investing monthly, at what age you have started investing and the returns you are getting. The example we have taken here is on estimated returns. It may be different in each case.

The post New Pension System: By investing only Rs 150, you will get full Rs 1 crore on retirement, as well as pension of 27,000, know complete details first appeared on Rightsofemployees.com.