We may decide to take a job at an early age, let’s say 20 or 21. However, our full potential is reached somewhere around 25 years of age. At this age, we are not only mature and skilled, but also have higher capability, in terms of money, experience as well as brainpower, for investing big. It’s never too late to earn big on your investments, and the age of 25 years may well be your best option to become a crorepati!.

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 How would you feel if you receive over Rs 1.50 lakh pension when you have opted for retirement! Yes, you might think its not possible. But guess what! Earning over Rs 1.50 lakh is quite easy actually and very much secured, because its government scheme which makes it possible. All you have to do is be disciplined in investing, if you want a very peaceful retirement. 

The National Pension Scheme (NPS) is the answer to you retirement prayers. This is a hassle free scheme, and eliminates the worry around earnings and returns in comparison to the volatility in stock markets. All you have to do is just invest a little portion of your salary. So, if you start to invest Rs 10,000 per month from the age of 25 years, then not only do you receive a hefty pension, but you may also find yourself on a pile worth crores. Here’s how!

NPS is a contribution scheme launched by the Indian government. This scheme offers a large variety of investment options to employees. It is supports individuals in regards to where they invest their pension wealth.

Main objective of NPS is to lower the liabilities of the government with regards to total pension, even as it ensures citizens earn a stable income following their retirement. NPS is an helping hand to those individuals who do not want to take risk and earn decent returns on their investment. Anyone can open an NPS account right from starting age of 18 up till 60 years.

With the introduction of eNPS, opening this scheme account is easy - you can do it in just 30 minutes. A Unique Permanent Retirement Account Numbers (PRAN) is sanctioned to each subscriber under this scheme during the time of joining. Not only this, individuals are allocated two accounts, which can be easily accessed at any given time.

One can begin their investment in NPS with a minimum amount of Rs 500 at the time of opening the account. It needs to be noted that, the NPS account matures when the subscriber reaches retirement.

An individual can withdraw 60% of the corpus on maturity and the remaining 40% is used to purchase annuities.

NPS also allows tax benefit, under section 80C of the Income Tax Act.

Because the NPS invests subscriber’s money into a broad range of investment options, the scheme does not have a specific interest rate.

Interestingly, the NPS has a potential to provide interest rate anywhere between 8% to a whopping 14% interest -  very much on the higher side when taking other investment options into consideration.

Let’s say, at the age of 25, you began investing Rs 10,000 every month in NPS at interest rate of 9% interest rate, for a retirement period of 35 years. This means you invested about Rs 42 lakh for next 35 years.

With this you generated about Rs 2.49 crore as interest and your overall pension wealth has been generated to Rs 2.91 crore. From the amount, you save tax up to Rs 12.60 lakh.

After the retirement period, if you decide to reinvest 46% of your pension wealth in annuity plan, then your pension that would be reinvested is Rs 1.34 cr, and you will receive pension of Rs 1 lakh per month.

Apart from this, the remaining 54% of the NPS wealth, you can withdraw which comes over Rs 1.57 crore. 

The more percentage you offer for reinvestment in annuity plan from your pension wealth, the higher pension you get post retirement period.

Hence, if you are at 25 years of age and are looking to make most of your future, then you might want to consider the above mentioned schemes to make better choices and yes, retire a crorepati!