When a person’s age starts increasing gradually. Then he starts worrying more about the pension. Especially when a person crosses 40 years of age or is close to it. Today we are going to tell you a method with which you will be able to set a monthly pension of 50 thousand rupees. The best thing is that you will be able to complete this work with the help of NPS. First let us tell you about UPS.
What is UPS?
The Central Government has approved the Unified Pension Scheme (UPS) for central employees. According to UPS, employees with at least 25 years of service will get a guaranteed pension equivalent to 50 per cent of the average basic salary of the last 12 months before retirement. Those with less than 25 years of service will get a pension equivalent to their seniority with a minimum service period of 10 years.
What is NPS?
Private sector employees can also choose NPS for their retirement planning. Since it is a market-linked plan, the returns depend on which stocks the fund plan has invested your money in. Based on the NPS, you receive a lump sum on your retirement and also get a pension.
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Understand the full calculation here
Anyone between the age of 18 and 70 can avail the benefits of NPS. Whatever contribution you make to the NPS, that money is divided into two parts. After retirement, you can withdraw 60% of the total corpus in a lump sum and 40% in annuities, which prepare your pension. You will have to invest at least Rs 15,000 before you turn 65. If you want a pension of Rs 50 lakhs.
If you invest Rs 15,000 for 25 years, you will invest a total of Rs 45,000,000. If interest is given even at the rate of 10 percent, then Rs 1,55,68,356 will be earned as interest. In this case the total amount will be Rs 45,00,000 + 1,55,68,356 = 2,00,68,356.
In this way you will get a pension of 50 thousand rupees.
You will get 60% of Rs 2,00,68,356 i.e. Rs 1,20,41,013 in a lump sum and 40% of Rs 80,27,342 will have to be invested in an annuity. Assuming an 8% return on your annuity investment, you will get Rs 53,516 as pension every month.
