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HomeFinanceInvest Rs 4000, get you Rs 1 crore; details of scheme: NPS

Invest Rs 4000, get you Rs 1 crore; details of scheme: NPS

The goal of the NPS retirement savings plan, which is a voluntary, defined-contribution plan, is to allow members to make the best decisions regarding their savings.

Employees in the private sector frequently have trouble saving a significant amount of money for their lifestyle after retirement. One requires a risk-free investment vehicle with a long-term return that exceeds inflation in light of inflation.

Fixed deposits, public provident funds (PPFs), and the national pension system (NPS) are among the various products on the market. NPS is a voluntary retirement savings program that was created to allow subscribers to make a specific commitment to planned savings and thus secure the future in the form of a pension. It aims to find a long-term solution to the problem of providing every Indian citizen with a sufficient retirement income.

If you work in the private sector, you should start investing as soon as possible. For instance, if you started investing Rs. If you contributed Rs. 4,000 per month to the NPS when you were 26 and continued to do so until you were 60, you could receive a pension of more than Rs.35,000 monthly. The interest rate is set at 11% for this calculation.

Subsequently, in case you start financial planning when you are 26 years of age, your complete venture will be Rs 16,32,000 when you are 60.At this point, your entire corpus would be Rs 1,77,84,886.This is beyond comprehension given that you only contributed Rs 16,32,000 and received approximately Rs 2 crore in return.

As a result, you would receive a monthly pension of approximately Rs 35,570 and a lump sum payment of Rs 1,06,70,932.As a result, as you can see, when you turn 61, in addition to receiving a monthly pension of approximately Rs 35,000, you will also receive a one-time payment of more than Rs 1 crore, allowing you to worry less about planning your retirement years.

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