National Pension System: Regular income and a lump sum after retirement are essential for everyone. However, planning is crucial. Without investing at the right time and with the right strategy, accumulating a substantial pension and a lump sum can be difficult. In such a scenario, the National Pension System (NPS) can prove to be a reliable option for retirement.
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This is how a corpus of ₹1.2 crore was created.
According to a case study by wealth advisory firm TheFynprint, Ajay, a retired engineer from Vadodara, made smart use of the NPS. He took advantage of Systematic Lump-Sum Withdrawal (SLW), a lesser-used feature of the NPS, and converted his ₹1.2 crore (approximately $12 million) retirement corpus into a disciplined and tax-efficient monthly income.
Aim to Make Big Money
Ajay transferred his entire post-retirement corpus to NPS in 2020 and continued contributing for the next five years. His goal was to earn approximately ₹90,000 per month. Of this, ₹50,000 would come from SLW and ₹40,000 from a joint-life annuity.
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Learn Where His Income Comes From
His monthly income comes from multiple sources: 40% from SLW, 30% from annuities, and 30% from other sources such as SCSS, bank deposits, and mutual funds. Ajay says that NPS provided him with all the benefits he needed, and he was able to manage his monthly income while remaining within the tax bracket.