NPS Calculator: Nowadays, the government is running numerous investment schemes. Everyone is concerned about their retirement. After retirement, regular sources of income disappear. If you, too, are worried about your retirement, the NPS scheme could be a great fit for you. NPS is an affordable and secure retirement plan. With a small investment, you can easily build a corpus worth crores. Private sector employees can also receive a guaranteed pension and tax benefits through NPS. This scheme provides financial security after retirement.

Invest at the age of 25

If you start investing ₹10,000 every month at the age of 25, you can build a corpus worth crores through compounding by the time you reach 60. This money will be beneficial after retirement.

Read Here: Major Banking Reform: 4 Nominees Allowed, Faster Withdrawal of Inactive Account Money

Invest at the age of 35

If you invest a total of ₹4.2 million in NPS at the age of 35, earning a 9% annual return will turn this amount into crores. Based on calculations, this amount could grow to ₹2.96 crore. This will also provide financial security after retirement.

Understand with calculations

If you invest ₹10,000 monthly, you will contribute a total of ₹4.2 million over 35 years. Earning a 9% annual return, this amount will grow to ₹2.96 crore. After this, you can withdraw 40% of the amount at the time of retirement, or ₹1.18 crore, at a time. ₹1.78 crore will go into annuity. This annuity will generate a monthly pension of approximately ₹88,915. This amount will continue to be received throughout your life.

Read Here: Flipkart End Season Sale—Samsung Galaxy S24 5G Price Cut: Buy Now With Rs 2500 Bank Discount

Compounding will create a substantial fund

Placing a higher annuity in NPS can increase your monthly pension. This will provide a stable income in retirement. The NPS calculator can be used to calculate pension and fund growth. Withdrawals of 60% of your corpus will require tax, and 40% must be invested in annuities. Compounding allows you to rapidly build a corpus, which will help you in retirement.