If the annuity rate is 6% at the time, you will receive a monthly pension of around Rs 50,000.
New Delhi: Everyone wants to have a stable future after they retire. There are numerous types of investments accessible for this purpose. The National Income System (NPS) is one of them, and it can provide you with a monthly pension of Rs 50,000 after you reach the age of 60. Let us explain what the government’s pension system is.
One such system is the National Pension System, which allows you to be financially self-sufficient even in old age. This is a government-sponsored scheme that pays out more than 10%. It’s one of those schemes that promises a large profit while posing little risk.
Previously, only government employees were eligible for this programme. The government, on the other hand, has now made it available to the general public. Any Indian citizen can benefit from this new pension system if they meet certain criteria. Even if you are eligible for income tax deductions, you can save money by using this method.
You must invest in the NPS on a monthly basis. You can choose how much this sum should be, and it will be withdrawn from your bank account automatically every month.
Assume you or your spouse are 35 years old and wish to get a monthly pension of Rs 50,000 after reaching the age of 60. In this case, you will have to deposit Rs 15,000 in this scheme on a monthly basis. You must put this money aside until you reach the age of 60. In this manner, you will have to deposit Rs 45 lakh in this scheme over a period of 25 years. Your maturity amount will be roughly Rs 2 crore when you reach the age of 60. You will receive 50 percent of this, or around Rs 1 crore, in a single sum, with the remaining Rs 1 crore available as a monthly pension.
If the annuity rate is 6% at the time, you will receive a monthly pension of around Rs 50,000. In the event of the scheme holder’s death, the remaining amount will be paid out in a lump payment to his or her nominee. People are quite interested in such a system in light of the COVID-19 outbreak and the uncertain environment.
