National Pension System:Even after retirement, more money is required. After the source of regular income stops, people have to face many problems to manage the monthly expenses. However, now you do not need to take tension. You can get a pension worth lakhs of rupees every month. You just have to invest some money every month.
The Central Government has started the National Pension Scheme. Under this scheme, you can get a pension of up to Rs 1 lakh every month. Government employees, private sector employees or anyone else can invest in this. Citizens between 18 to 70 years can invest under NPS.
NPS is a better option for retirement
As retirement age approaches, people become worried about investing and are unable to decide where to invest. In such a situation, you can invest in NPS. You can invest in the National Pension System for 70 years. However, if you start investing in it as soon as possible, the more profit you get. The National Pension Scheme was launched on 1 January 2004 and was also opened to private sector employees in 2009.
National Pension Scheme details
National Pension Scheme is a voluntary and long term investment plan. This is a social security initiative of the Central Government. NRIs can also invest in this pension scheme. From the time the account is opened, one has to contribute for 60 years or till the maturity period of 20 years. The higher the contribution, the higher the pension. The average return in this scheme can be from 9 percent to 12 percent.
How much will have to be invested for one lakh
If you invest Rs 10 thousand every month for 30 years, the monthly pension will be Rs 1 lakh, while on retirement you will also get a lump sum amount of about Rs 1 crore. Equity exposure in this scheme is 50 to 75 percent.
If you plan to invest in this scheme, you also get the benefit of tax saving. You can save tax up to Rs 50 thousand under section 80CCD (1) and up to Rs 1.5 lakh under section 80C.
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