National pension scheme i.e. NPS is considered better for investment. In this, you can keep 40 percent amount for pension and withdraw 60 percent as lump sum.
National Pension System
After retirement, money is saved from the beginning so that there is no problem of money. If you also want to secure your future, then the National Pension System (NPS) is a great option. In this government scheme, you will get pension every month after retirement. Also, you can take 60 percent of the total amount as a lump sum. Under this scheme, if you save 100 rupees daily, then you can take a pension of up to 19 thousand.
NPS is a market linked retirement oriented scheme. In this money is invested in two places, first is Equity i.e. Stock Market and second is Debt i.e. Government Bonds or Corporate Bonds. You can decide how much money of NPS will go into equity only during the opening of the account.
How to get monthly pension
According to the NPS trust calculator, if a person deposits 100 rupees a day or Rs 3000 every month at the age of 25, then in 35 years, he will deposit 12 lakh 60 thousand rupees. If it attracts an interest of 10 per cent per annum, then at maturity this amount will be around 1 crore 15 lakhs. If you keep 40 percent of the total amount for pension, then the pension fund will be about 46 lakh rupees. At the same time, you can take out 60 percent of the assembled. It will be around 69 lakh rupees. If you get a return of 5% per annum on pension funds, then you will get close to Rs 19,200 as pension every month.
Benefits of nps
NPS gets the benefit of annual exemption of up to 1.5 lakhs under Section 80C of Income Tax. Apart from this, additional tax benefit of 50 thousand is available under 80CCD (1B). In this scheme, you have to deposit at least 1000 rupees annually. The average return for the last 10 years of the NPS scheme has been close to 9.65 per cent.
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