That’s why it is necessary that the source of monthly income should remain. So whenever we start our job or employment, start planning for retirement along with it. Thinking of retirement planning, especially when you are in private job, then National Pension System is a good option. This is because it can create a big retirement fund. Along with this, you can also get monthly pension. Also, NPS is the cheapest pension product.

NPS Calculator: Planning ₹ 1 Lakh Monthly Pension

Let’s say your plan is to retire from your job or profession at the age of 60 and get a pension of Rs 1 lakh every month after that. You have chosen NPS for your retirement plan. Here it is important to know that how much should be invested every month so that after retirement, a pension of at least one lakh rupees comes. Let us understand with the help of NPS Calculator of SBI Pension Fund. Suppose you are 21 years old and you want to retire in 60 years. In this way, you will get a total investment period of 39 years for projected retirement planning. See calculation.

Monthly investment in NPS: ₹10,000
Total contribution in 39 years: ₹46.80 Lakh
Estimated Return on Investment: 10%
Net amount at Maturity: ₹5.62 Crore
Annuity Purchase: 40% (₹2.25 Crore)
Estimated Annuity Rate: 6%
Age 60 Pension on: ₹1,12,458 per month

(Note: This calculation is an approximate figure. Actual figures may differ.)

If you take 40% annuity in NPS (it is necessary to keep this minimum) and the annuity rate is 6% per annum, then after retirement you will get Rs 3.37 crore lump sum and 2.25 crore will go to annuity. Now with this annuity amount, you will get a pension of about Rs 1 lakh every month.

The more you keep the amount of annuity, the more pension you will get. The responsibility of investing the amount deposited in NPS is given to the registered Pension Fund Managers by PFRDA. They invest your investments in equity, government securities and non-government securities as well as fixed income instruments.

NPS: It is necessary to take 40% annuity

Annuity is a contract between you and the insurance company. According to this contract, it is necessary to buy an annuity of at least 40 percent of the amount in the National Pension System (NPS). The higher this amount, the higher the pension amount. The amount invested under annuity is received as pension after retirement and the remaining amount of NPS can be withdrawn in lump sum.

Let us tell you, under Section 80CCD (1B) of the Income Tax Act under NPS, the benefit of additional tax deduction is available on investment up to Rs 50 thousand. If you have met the limit of up to Rs 1.5 lakh in section 80C, you can avail this additional tax benefit.

(Disclaimer: There is no guaranteed pension in NPS. Here only a calculation is given. Investment or annuity returns are approximate. So consult your advisor before starting any investment.)

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On maturity of the National Pension System, customers can withdraw a lumpsum amount and with the remaining money, an annuity plan can be purchased so that they can get fixed pension for the month.

The National Pension System is considered better for those people who need a fixed amount every month for post-retirement expenses. Especially when there is no source of income.

National Pension System investment involves very less risk and PPF gives higher returns than Fixed Deposits. Under the National Pension System, the subscriber is given the opportunity to invest in two ways, Active and Auto Choice.

How to get 75000 rupees pension

In Active Choice, the customer allows his money to be invested in instruments like stocks, government securities. 75% of the total NPS investment can be invested in Active Choice. Let us know how much will have to be invested in NPS for pension of Rs 75,000 every month.

For investing Rs 75,000 per month, the maturity amount of NPS i.e. Rs 3.83 crore on the subscriber’s 60 years should be Rs. This money will be received from the annuity plan which is invested at the time of maturity. The most important thing is to know how to raise Rs 3.83 crore, so that after the age of 60, a pension of Rs 75,000 will be available every month.

Start investing with Rs 10,000

Suppose a person of 25 years starts investing Rs 10,000 in NPS every month for the next 35 years. With a return of 10% every year, at the age of 60, Rs 3,82,82,768 will be accumulated.

If 40 percent of this amount is invested in buying an annuity plan, then till retirement Rs 76,566 will be available every month. Such people whose age is 30 years and they start investing Rs 16,500 in the National Pension System every month, then after retirement they will easily get a pension of Rs 75,218.

Two types of accounts are opened in the National Pension System. Tier 1 account and Tier 2 account. Tier 1 account is mandatory which will be opened for every NPS subscriber, whereas Tier 2 account can be opened by the subscriber at his own discretion.

The National Pension System was first started only for government employees, but later it was started for employees of many sectors.

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The National Pension System is considered better for those people who need a fixed amount every month for post-retirement expenses. Especially when there is no source of income.

National Pension System investment involves very less risk and PPF gives higher returns than Fixed Deposits. Under the National Pension System, the subscriber is given the opportunity to invest in two ways, Active and Auto Choice.

How to get 75000 rupees pension

In Active Choice, the customer allows his money to be invested in instruments like stocks, government securities. 75% of the total NPS investment can be invested in Active Choice. Let us know how much will have to be invested in NPS for pension of Rs 75,000 every month.

For investing Rs 75,000 per month, the maturity amount of NPS i.e. Rs 3.83 crore on the subscriber’s 60 years should be Rs. This money will be received from the annuity plan which is invested at the time of maturity. The most important thing is to know how to raise Rs 3.83 crore, so that after the age of 60, a pension of Rs 75,000 will be available every month.

Start investing with Rs 10,000

Suppose a person of 25 years starts investing Rs 10,000 in NPS every month for the next 35 years. With a return of 10% every year, at the age of 60, Rs 3,82,82,768 will be accumulated.

If 40 percent of this amount is invested in buying an annuity plan, then till retirement Rs 76,566 will be available every month. Such people whose age is 30 years and they start investing Rs 16,500 in the National Pension System every month, then after retirement they will easily get a pension of Rs 75,218.

Two types of accounts are opened in the National Pension System. Tier 1 account and Tier 2 account. Tier 1 account is mandatory which will be opened for every NPS subscriber, whereas Tier 2 account can be opened by the subscriber at his own discretion.

The National Pension System was first started only for government employees, but later it was started for employees of many sectors.

The post Retirement Pension: You will get 75000 rupees pension every month, just have to do this work first appeared on Rightsofemployees.com.