NPS is considered an affordable and safe retirement plan. You can easily build a fund worth crores even with a small investment. Private sector employees can also get a guaranteed pension and tax benefits through NPS. This scheme ensures financial security after retirement. In this article, we will share all the details about this strategy to build ₹2.96 crore.

Investing in NPS: A Smart Way to Secure Your Retirement

NPS is considered an affordable and safe retirement plan. Even with a small investment, you can build a fund worth crores. Private sector employees can also enjoy guaranteed pensions and tax benefits through NPS. This scheme ensures financial security after retirement.

Start Investing at the Age of 25

If you’re 25 years old, you can start investing ₹10,000 every month in NPS. By the time you reach 60, compounding will help you create a fund worth crores, ensuring you don’t have to worry about money after retirement.

How Much Fund Will You Create in 35 Years?

If you invest ₹42 lakh in NPS over 35 years, with an annual return of 9%, your total amount could grow to ₹2.96 crores. This will provide financial security after retirement.

Understanding Your Pension Calculation

By investing ₹10,000 every month, your total contribution would be ₹42 lakh in 35 years. With a 9% annual return, this could grow to ₹2.96 crores. Upon retirement, you can withdraw 40% (₹1.18 crore) as a lump sum, while ₹1.78 crore will go into an annuity. This annuity will give you a monthly pension of approximately ₹88,915 for life.

Building Funds Through Compound Interest

By keeping more money in an annuity, you can increase your monthly pension, providing stable income during retirement. NPS calculators can help you understand pension and fund growth. Note that 60% of the amount may be subject to tax, and investing 40% in the annuity is mandatory. Compound interest helps your fund grow rapidly, creating a large retirement corpus.

NPS Is a Safe Investment

If you’re looking for a secure future, consider investing in NPS. It’s a safe investment option and is considered one of the best for pensions. Before investing, make sure to gather all necessary information about calculations and other details.

Disclaimer: This information is based on general knowledge. Investors are advised to check with the bank for the latest rates and terms before investing. Timesbull will not be responsible for any investment decisions made based on this information.