Want to receive a pension of ₹2 lakh per month? Don’t wait any longer! All you need to do is invest in the National Pension System (NPS). This will ensure you don’t have to worry about money after retirement. The NPS offers a great way to save for your future and helps you avoid tax worries. Take advantage of the amazing benefits the NPS provides.

What is NPS?

The National Pension System (NPS) is a government-backed scheme that helps you save money for retirement. Anyone between the ages of 18 and 70 can invest in NPS.

You can take advantage of this system whether you are a government employee, a private sector employee, or even an NRI. The potential returns of NPS are between 8% and 12% per year. You can also receive a tax deduction of up to ₹2 lakh on your investment.

How Much Should You Invest in NPS to Get a Monthly Pension of ₹2 Lakh?

  • Age to start investing: 30 years
  • Monthly investment: ₹25,000
  • Annual return: 10%
  • Investment period: 30 years

Total investment:

₹25,000 x 12 months x 30 years = ₹90 lakh

After 30 years, assuming an average annual return of 10%, your total retirement fund will be ₹5.69 crore.

Buying an Annuity for Your Pension

To receive a monthly pension, you need to use at least 40% of your funds to buy an annuity. In this case, if you invest 55% of your corpus in an annuity, you will get the following benefits:

  • Annuity investment: ₹3.13 crore (55% of ₹5.69 crore)
  • Annuity return: 8%
  • Monthly pension: ₹2,08,938 (over ₹2 lakh)

How Does NPS Help You Save for Retirement?

  • Tax benefits: You can save up to ₹1.5 lakh under Section 80C of the Income Tax Act and an additional ₹50,000 under Section 80CCD(1B). This gives you a total tax benefit of ₹2 lakh.
  • Flexibility: You can choose your investment pattern and manage your funds online, which makes NPS flexible and easy to track.
  • No hassle: Even if you change jobs or locations, you can still manage your NPS account easily.

In Conclusion we can say, If you start investing ₹25,000 per month in NPS at the age of 30 and get an average annual return of 10%, you can accumulate a pension corpus of ₹5.69 crore. This will give you a monthly pension of ₹2 lakh or more. Don’t delay. Start now with the right knowledge and expert advice!