The National Pension System (NPS) is the only way to obtain a universal pension. What’s most important is that those who are not employed anywhere can also contribute to this scheme and get a lump sum as well as a monthly pension from the age of 60. There is absolutely no need for a woman to have been employed in any formal job at any point of time. One can just open an NPS account and start investing from the age of 18.
Usually, a woman gets a significant amount of cash at the time of marriage from friends and relatives. One can keep aside a part of it in a bank account and make a small contribution to the NPS account through automated debits. Let’s see what sum the NPS account can accumulate for her in due course.
NPS calculator for homemaker
Say a homemaker keeps investing Rs 1,000 only a month at the age of 25, when she gets married. The NPS calculator tells us that at the age of 60, she will start getting a minimum pension of Rs 34,938. She will also get a one-time payment of Rs 1.04 crore.
In the above instance, the monthly pension can be raised to Rs 52,406. However, it will lower the one-time payout at Rs 69.87 crore. This can be done by setting aside 60% of the total corpus accumulated at 60 years for the payment of monthly pension. The earlier pension of Rs 34,938 was obtained by keeping 40% of the corpus aside for pension. One can vary the amount reserved for pension between 40% and 60% of the total corpus.
A homemaker can also aspire to have a monthly pension of well above Rs 1 lakh just by raising their monthly contribution to Rs 2,000. If she has the discipline to continue the small investments, she can get a pension of Rs 1.04 lakh at 60. The one-time payout stands at more than Rs 1.39 crore. This is with 40% of the corpus reserved for pension.
One can continue paying this contribution to the NPS account till the age of 75. But the trick is to start as early in life as possible after turning 18.
NPS for homemaker: It is not necessary that only the breadwinner from the family plans for retirement. Homemakers can make their own contributions to get a pension after 60 too. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
