NPS Calculator: If you are a private sector employee, you should start investing as early as you can.
NPS Calculator: Those working in the private sector often find it hard to accumulate a big fund for their post-retirement life. Given the inflation, one needs a risk-free investment instrument that yields an inflation-beating return in the long run. While there are many such instruments in the market, some of them are Fixed Deposits, Public Provident Funds (PPF) and National Pension System (NPS). NPS is a voluntary retirement savings scheme laid out to allow the subscribers to make a defined contribution towards planned savings thereby securing the future in the form of a Pension. It is an attempt towards a sustainable solution to the problem of providing adequate retirement income to every citizen of India.
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If you are a private sector employee, you should start investing as early as you can. Suppose you started investing Rs 4000 per month at the age of 26 years in the NPS and continue the investment till the age of 60, you can earn over Rs 35,000 as a monthly pension. This calculation is done keeping the rate of interest at 11 per cent.
So, if you start investing at the age of 26, your total investment would be Rs 16,32,000 when you reach 60 years of age. At this point, your total corpus would be Rs 1,77,84,886. This is unimaginable given that you invested only Rs 16,32,000 but what you are getting is around Rs 2 crore.
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So, the lump-sum return that you would be getting is Rs 1,06,70,932 while the monthly pension would be around Rs 35,570. So, you can see that not only you would be getting around Rs 35,000 per month pension from the start of 61s years of your age but will also get a one-time payment of over Rs one crore that would help you plan your retirement life without much hassle.
