NPS Calculator: When a person reaches stability and momentum in their career at the age of 35, planning for future financial security becomes crucial. With this in mind, the National Pension System (NPS) is an ideal option. This scheme not only helps in building a large corpus over the long term but also provides a stable pension after retirement. If one starts investing with discipline at this age, it is possible to build a fund worth crores of rupees by retirement.
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Estimated Benefits of Investing in Active Choice
If a person chooses the Active Choice option in NPS at the age of 35 and invests Rs 20,000 every month, a corpus of approximately Rs 2.49 crore can be accumulated by the age of 60. By investing 50% of this corpus in an annuity plan, an estimated monthly pension of Rs 83,000 can be received. The remaining Rs 1.24 crore can be withdrawn as a lump sum and used for other needs. This type of planning not only provides a secure future but also ensures financial independence.
Understanding the Investment Calculation
Investing Rs 20,000 every month in NPS at the age of 35 will result in a total investment of approximately Rs 60 lakh over 25 years. If an estimated return rate of 10% per annum is considered, the total corpus can reach Rs 2,48,93,914, or approximately Rs 2.49 crore.
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Benefits of Pension
If 50% of this corpus is invested in an annuity plan, based on an estimated annuity rate of 8% a pension wealth of approximately Rs 1.24 crore is generated. This means that approximately Rs 82,980 will be received as a monthly pension. The remaining Rs 1.24 crore will also be available as a lump sum fund. Invest at the right time
Regular investments in NPS and choosing the Active Choice option are the most effective ways to plan for retirement. Starting your investments at the right time and contributing in a disciplined manner can ensure financial security in retirement.