NPS Calculator: The Centre recently launched an NPS (National Pension System) scheme for minors. The scheme called NPS Vatsalya, to be regulated by the Pension Fund Regulatory Development Authority (PFRDA), is also a retirement investment plan, the extended version of NPS.
Under the NPS Vatsalya plan, parents can deposit on behalf of their minor children a minimum of Rs 1,000 per year. However, there is no limit on maximum contribution, serving as a meaningful way for parents to provide their children with financial support until they start earning and investing on their own.
Also Read– Petrol, Diesel Fresh Prices Announced: Check Rates In Your City On October 27
NPS Vatsalya Scheme: How much you need to invest to make Rs 1 crore corpus for your child?
The NPS Vatsalya scheme is gaining attention for its compelling benefits. With an investment as low as Rs 275 per month, or Rs 3,300 per year, this scheme offers the potential to build a substantial corpus of Rs 1 crore by the time the child turns 60 and retires.
Understanding the investment breakdown:
Here’s a detailed look at how this investment can accumulate over time:
Monthly Investment: Rs 275 or
Annual Investment: Rs 3,300
Investment Duration: 60 years
Rate of Return on investment: 10%
Total Investment Over 60 Years: Rs 1,98,000
Read More: Zomato rolls out ‘order scheduling’ feature for pre-planned deliveries
Projected Returns:
With a disciplined investment approach, the projected returns can be significant:
Total Return on Investment: Rs 98,17,198
Total Corpus at Retirement (60 years): Rs 1,00,15,198
While Rs 1 crore may seem like a substantial amount today, it’s important to consider its future value. Assuming an inflation rate of 6% per annum over the next 60 years, the purchasing power of that amount will significantly decrease. Let’s explore what Rs 1 crore will truly be worth in six decades.
Read More: ONDC to launch own buyer app ‘DigiHaat’ to stimulate wider adoption of the network
Considering an inflation rate of 6% annually over the next 60 years, the value of Rs 1 crore would be approximately Rs 9.18 lakh in today’s terms. We present this calculation to illustrate how the decline in the value of the rupee over the medium to long term underscores the importance of careful retirement planning. We often plan our finances based on today’s purchasing power, but this will steadily decrease over time.
For more news like this visit Officenewz.com
