The government's scheme can be a better option for NPS investment. If you save 2500 rupees monthly from the age of 25, you will get a pension of 24 thousand rupees after retirement, along with a one-time fund. (Reuters)
Career is usually started by the age of 22-23. The sooner you start a career, the more you have to plan for a savings plan for the future. In the right direction, if you keep investing by saving some money from monthly income then there will be regular income in the coming days and many needs will be fulfilled. Investment should also be in place where the risk is low. In such a scenario, the National Pension System (NPS) scheme of government may be a better option. We will tell you how to save 2500 rupees per month from the age of 25, after retirement, you will get a monthly pension of 24 thousand rupees, together with a fund of 48 lakhs.
Who may be involved in the plan?
In the National Pension System, any salaried between 18 to 60 years of age can be added. Earlier it was only for government employees, but since 2009 the scheme has been opened for those in the private sector.
Where is your money invested?
The responsibility of investing money deposited by you is given to PFRDA registered pension fund managers. There are now 8 fund managers linked to the scheme which invest your money in fixed income instruments in addition to equity, government securities and non-government securities. Subscribers can choose from or make changes from these.
How will 24 thousand monthly pension?
If you join the age of 25 in the scheme, by the age of 60, that is 35 years, you will have to deposit 2500 rupees every month under the scheme. The total investment made by you will be Rs. 10.50 lakhs. If the estimated return on total investment is 10% then the total corpus would be 98.70 lakh rupees. If you buy annuity with 50 per cent of this, then the value will be 47.85 lakh rupees. Lump Sum Value will also be 47.85 lakhs. If the annuity rate is 6% then after the age of 60, pension will be 24 thousand rupees per month. Besides, fund of Rs 47.85 lakhs from Agal.
(Note: At least 40 per cent of the NPS scheme is required to buy an annuity, increase the amount of annuity for more pension, here we have calculations for buying annuity from 50 per cent of the amount.
How will the account open? Government has made a point of presage to the government and private banks for the NPIS scheme. You can open an account by visiting any nearest bank branch.
What is the need to open an account
For this you need berth certificate, 10th degree, address proof and eye card. The registration form gets from the bank.
There are 2 types of accounts
There are two types of Tier 1 and Tier 2 accounts under the scheme. Opening a Tier 1 account is essential, while the Tier 2 account can start opening any Tier 1 account. The Tier 1 account can not be fully funded before the age of 60 years. While investing in Tier 2 accounts with your own will or withdraw funds.