We all want to become a crorepati and have a very satisfactory and peaceful retirement with all pension problems taken care of. Many citizens prepare for their retirement during their working days and the government has provided help. There are many schemes offered by government, when it comes to securing your retirement. 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 capabilities in terms of money, experience as well as brainpower, for investing big. It’s never too late to earn big on your investments, and starting at the age of 25 years may well be your best option to become a crorepati!.

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So, what is it that can actually pave help you pave your way to crorepati status? The National Pension Scheme (NPS) is the answer to your retirement prayers. This is a hassle free scheme, and eliminates the worry around earnings and returns in comparison to the volatility you will face regarding investments just 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 sitting 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.

However, that requires some hard work, and as far as you are concerned, all you need is to invest Rs 5000 every month. Here's how this will turn into a pot of gold at the end of the rainbow for you.

Let’s say, at the age of 25, you began investing Rs 5,000 every month in NPS at interest rate of 8%, for a retirement period of 35 years. This means you invested about Rs 21 lakh over the next 35 years.

(Image Source: SBI Pension Fund)

With this you generated about Rs 92.97 lakh as interest and your overall pension wealth has boosted to Rs 1.13 crore. From the amount, you save tax up to Rs 6.30 lakh.

After the retirement period, if you decide to reinvest 67% of your pension wealth in annuity plan, then your pension that would be reinvested is around Rs 73.36 lakh, and you will receive pension of Rs 50,908 per month.

(Image Source: SBI Pension Fund)

Apart from this, the remaining 33% of the NPS wealth, you can withdraw which comes over Rs 37.61 lakh.