NPS Scheme: Inflation is increasing every day; in such a situation, it can be said that it will become difficult to manage household expenses in the coming time. The reason for this is that household expenses will increase to Rs 1 lakh every month. After retirement, it becomes necessary to arrange money to run your own expenses. If you want to get a monthly pension of Rs 1 lakh after retirement, then you have to start investing wisely from now itself.
Let us tell you that NPS can be a great option to secure retirement. In this, a good pension is received after retirement. But in this, you have to invest by making a plan. A question arises in the minds of many people about how much money should be invested in NPS so that after retirement, one lakh rupees are received every month. Suppose your age is 40 years, then how much pension should be received in NPS so that retirement remains good?
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An income tax exemption is available
For information, let us tell you that a tax benefit is available in NPS. Under Section 80CCD of the Income Tax Act, a tax benefit can be obtained by investing up to Rs 1.5 lakh. This exemption is included in the limit of 80C. Apart from this, on investing in NPS, an extra exemption of Rs 50 thousand is available under Section 80CCD (1B). In this way, by investing in NPS, you can get a total tax benefit of up to Rs 2 lakh.
How much to invest for a pension of Rs 1 lakh
Now the question arises arising to how much a 40-year-old person should invest so that after 60 years, he starts getting a pension of Rs 1 lakh. In such a situation, if one starts investing in NPS at the age of 40 and keeps investing till the age of 60, i.e., for 20 years, then he will have to deposit a fund of about Rs 4.97 crore. According to the condition, it gives an annual return of 10 percent. In such a situation, a return of 6 percent is received on the annuity on retirement. In such a situation, suppose you invest 65 thousand rupees monthly and get a return of about 10 percent for the next 20 years. In this way, your total amount on maturity will be around Rs 4.97 crore.
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Know how much is received on maturity
According to the information, if the total fund in NPS is less than Rs 5 lakh, then you can withdraw the entire amount tax-free. If the fund is more than Rs 5 lakh, then 60 percent of the amount can be withdrawn tax-free, and it becomes necessary to buy an annuity for the remaining 40 percent amount. You will have to pay income tax according to your tax slab on the monthly pension received from the annuity.