NPS Scheme: If you do a private job, then you will definitely have the tension of old age because you do not get pension after retirement in a private job. Government employees get pension, but those working in the private sector do not get this facility. In such a situation, they have to secure their old age by investing during the job itself. The government has started many schemes, in which pension can be availed after the age of 60 years by making safe investments. One such scheme is the National Pension Scheme (NPS). This scheme is for those people who are doing private jobs. He should invest in NPS. So that he can get a pension of 50 thousand rupees per month in his old age.
What is NPS?
National Pension System is a long term investment scheme. This scheme has been launched keeping in mind the regular income after retirement. It is a contributory pension scheme run by the Central Government. After investing in NPS, you get a huge retirement corpus at the time of retirement. Along with this, pension is also available every month.
Who can open an account in NPS?
You can open this account in your name or in the name of your partner. In NPS, both money and pension are available after the age of 60 years.
How much and how to invest in NPS?
Investment in NPS can be done monthly or annually. You can start investing in NPS from Rs 1000 per month. Which can be run till the age of 70 years. After 60 years, 60 percent of the money can be withdrawn.
Avail additional tax exemption on investments?
You can avail an additional exemption of up to Rs 50,000 annually by investing in the National Pension System. You can claim benefits on savings made in NPS under section 80CD(1B) in addition to section 80(c) of income tax.
How much pension will be received on investing 5 thousand rupees?
If you are 30 years old. You invest Rs 5,000 every month in NPS account and continue for 30 years. If you get an average return of 10% on this, then at the age of 60 you will have around Rs 1.12 crore in your NPS account. Under the rules, you will get Rs 45 lakh. Along with this, 45 thousand pension will also be given. You can also withdraw 60% of this money at the time of retirement.