NPS: How to get Rs 50,000 monthly pension with Rs 100 daily savings

New Delhi: The National Pension System (NPS) has been the most go to pension plan for the citizens of India. The scheme had been launched by the Government of India to provide old age security to the depositors. Such a miracle NPS is, that with just Rs 100 per day investment, a subscriber can get Rs 50,000 per month pension in NPS along with a corpus of Rs 40 lakh upon retirement. Yes! With just Rs 100 daily savings one can get lifelong pension from the pension scheme and live a tension free retirement life.

Here’s how one can accumulated corpus of Rs 40 lakh and get Rs 50,000 pension per month in NPS with just Rs 100:

To relish this target, following assumptions have been made:

Individual starts NPS investment at age of 25
Subscriber should invest regularly till the age of 60
Subscriber would use at least 65 per cent of his NPS retirement corpus to buy the annuity plan upon retirement
Expected return on NPS investment throughout the investing period will be 10 per cent
Expected annuity rate of 8 per cent on the plan purchased upon retirement

Considering the above mentioned assumptions, if the subscriber begins NPS investment with just Rs 100 per day at the age of 25, then, by the time he would be 60-year-old, the investor would be able to accumulate a total corpus of Rs 1.14 crore. The individual would invest total of just Rs 12.60 lakh in the overall time period of 35 years. Upon retirement, if the person buys an annuity plan with 65 per cent of his retirement corpus, the beneficiary would get Rs 50,000 pension per month in NPS. On top of that, the person will be left with surplus corpus of around Rs 40 lakh.

So, you saw? How on savings of just Rs 100 per day, you can secure his entire retirement life though this miracle pension plan!

Note: NPS is not a guaranteed pension scheme. The above example is just for illustrative purpose.

 With a total of just Rs 12.60 lakh total NPS investment, one can get Rs 50,000 pension per month in National Pension System for entire life!  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today