National Pension System (NPS): Turn Rs 211/day into Rs 50,000/month pension, Rs 18 lakh cash!

National Pension System (NPS) Investment Trick: By saving just Rs 211 per day for investing Rs 6330 (Rs 211x30) per month in your NPS account, you may draw a monthly pension of Rs 50,000 and also withdraw a lump sum of Rs 18 lakh after retirement. However, the trick here is that you must start investing at the age of 30. If you start even earlier, say at 25, then the same investment can fetch you a monthly pension of Rs 76,954 and a lump sum of over Rs 28 lakh upon retirement at the age of 60. NPS is a government-backed pension scheme.

The online NPS calculator of HDFC Bank shows what you can get by investing Rs 6330 per month starting at the age of 30 and 25 respectively. Here's a look:

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Rs 6330 per month NPS investment at starting 30

The calculator shows you may get Rs 50,110 monthly pension and over Rs 18 lakh lump sum on retirement if you start investing at the age of 30. The expected rate of return is 8 per cent and the calculator has not considered applicable charges. 

(*Source:HDFC Pension)

Rs 6330 per month NPS investment starting at 25

The calculator shows you may get Rs 76,954 monthly pension and over Rs 28 lakh lump sum on retirement if you start investing at the age of 25. The expected rate of return is 8 per cent and the calculator has not considered applicable charges. 

NPS is currently regulated by Pension Fund Regulatory Development Authority. The government is planning to separate the PFRDA and National Pension System Trust, which has been set up by PFRDA to takes care of assets and funds under the NPS. 

A PFRDA document describes NPS as "an easily accessible, low cost, tax-efficient, flexible and portable retirement savings account. Under the NPS, the individual contributes to his retirement account and also his employer can also co-contribute for the social security/welfare of the individual."

"NPS is designed on Defined contribution basis wherein the subscriber contributes to his account, there is no defined benefit that would be available at the time of exit from the system and the accumulated wealth depends on the contributions made and the income generated from investment of such wealth."