NPS Pension Calculator: Started investment at age of 40? Know how much you need to contribute to get Rs 50K monthly pension under National Pension System
NPS: Private sector employees can also choose NPS for their retirement planning. Since it is a market-linked scheme, returns depend on the performance of equity the fund scheme has invested its money in.
National Pension System (NPS) is a market-linked pension scheme. People can use this scheme to save funds for retirement. The scheme is open to private and public sector employees as well as for self-employed and other individuals. Pension Fund Regulatory and Development Authority (PFRDA) operates this scheme.
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Unified Pension Scheme (UPS)
On Saturday, the center has approved the Unified Pension Scheme (UPS) for central government employees.
What is UPS?
Under UPS, employees who have served for at least 25 years will get a guaranteed pension equal to 50 per cent of their average basic salary for the previous 12 months before retirement. Those with fewer than 25 years of service will get a pension equal to their tenure, with a 10-year minimum qualifying service duration.
What is NPS?
Private sector employees can also choose NPS for their retirement planning. Since it is a market-linked scheme, returns depend on the performance of equity the fund scheme has invested its money in.f
NPS benefits
Under NPS, you get a lump sum amount on your retirement and also get a pension.
NPS: How much do you need to invest every month to get a pension of Rs 50,000?
Let us tell you that if you start investing in NPS at the age of 40, then how much will you have to invest every month to get a pension of Rs 50,000?
How the NPS pension is calculated?
Anyone from the age of 18 to 70 years can take benefit of NPS. Whatever contribution you make to NPS, that money is divided into two parts. After retirement, you can take 60% of the total corpus in a lump sum and 40% goes into an annuity, which prepares your pension.
How to get a Rs 50k pension if you start investing at 40?
You will have to invest atleast Rs 15,000 till the age of 65.
NPS calculations
If you invest Rs 15,000 for 25 years, you will invest a total of Rs 45,00,000. If interest is given on this even at the rate of 10 per cent then Rs 1,55,68,356 will be received from interest. In this case, the total corpus will be 45,00,000 + 1,55,68,356 = 2,00,68,356.
Here's how to get Rs 50k/month pension
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 annuity. If a return of 8% is assumed on your annuity investment, then accordingly you will get Rs 53,516 as pension every month.