Lump sum 1.62 Cr, monthly pension of 1 lakh… This scheme will make you a millionaire in just this much time

New Delhi: These days people are facing losses in the Indian stock market. In such a situation, people are now looking for safe investment options. Where capital is also saved and they also get crores of rupees in the long term. NPS is one such scheme, which is run by the government and can give lump sum crores of rupees along with pension in the long term. Let’s understand how?

Under the National Pension System, you get returns on monthly contribution. Any government or private sector employee can start investing in it. This scheme has been designed to give pension after retirement. Under this scheme, tax benefits are also available on the contribution of both the employee and the employer. Due to being linked to the market, market based returns are given under this scheme. NPS rules

NPS account is portable i.e. it can be operated from anywhere in the country. Under this scheme, 60% of the total deposit can be withdrawn after retirement. The remaining 40% goes into the pension scheme. NPS is operated by the Pension Fund Regulatory and Development Authority (PFRDA). Tier 1 and Tier 2 accounts are opened under NPS.

NPS withdrawal rules

If you invest in NPS every month, then after retirement i.e. after 60 years, you can withdraw up to 60% of the lump sum amount from this scheme and annuity can be purchased from the remaining 40%. So that after retirement you keep getting pension every month. Under the new NPS guidelines, if the total corpus is Rs 5 lakh or less, then subscribers can withdraw the entire amount without buying annuity plan. This withdrawal amount is tax free.

Which age is best for investment

Private sector employees up to the age of 35 years get more exposure to equity. This exposure can be up to 75 percent. On the other hand, in active choice, 75 percent exposure is available in equity till the age of 50. On the other hand, by the age of 60, this exposure remains 5 percent to 50 percent. In such a situation, if this planning is done at the age of 35, then it can be a better option.

How will crores of rupees be deposited
If you are planning to invest in NPS and your age is 40 years, then you can avail the benefit of pension of Rs 1 lakh till the age of 20. However, you will have to put 20 thousand rupees every month in NPS. On this, you can increase the investment by 10 percent every year. If the estimated return on this is considered to be 10%, then after 20 years, you will have a total investment of about Rs 3 crore 23 lakh.

The total amount as return will be Rs 1.85 crore and the total investment will be Rs 1.37 crore. The total tax saving on this will be Rs 41.23 lakh. Now you will have to buy annuity for pension.

• Investment of pension wealth in annuity plan: 55%
• Annuity rate: 8%
• Pension wealth: Rs 1.62 crore
• Lump sum withdrawal amount: Rs 1.62 crore
• Monthly pension: about Rs 1 lakh

By planning and investing in this way, you will get a lump sum fund of Rs 1.62 crore. At the same time, you will start getting pension of about Rs 1 lakh every month.