Planning retirement? How Rs 7,000 monthly savings can secure Rs 1.5 lakh pension

The National Pension System (NPS) is a great way to secure a steady income after retirement. The pension amount depends on the investment made. Let's explore how to invest to receive a monthly pension of Rs 1.5 lakh.

National Pension System

Starting a future-proof investment while working is essential. Plan your investments to ensure a stable income for post-retirement expenses. If you desire a good pension after retirement, consider investing in the National Pension System (NPS).

NPS Calculator

By investing in this scheme, you can accumulate a substantial amount. Learn how to invest to receive a monthly pension of Rs 1.5 lakh after retirement under the National Pension System.

Pension planning

To receive a monthly pension of Rs 1.5 lakh, invest Rs 7,000 monthly. Assuming a 12% annual return on NPS deposits, a 25-year investment totals Rs 29,40,000. With 12% interest, this yields approximately Rs 4.54 crore.

NPS Rules

40% of this fund can be used for annuity investment. The remaining 60% can be withdrawn as a lump sum. Assuming a 6% interest on the remaining amount, you can receive approximately Rs 1.5 lakh monthly pension.

Retirement planning

The NPS is managed by the Pension Fund Regulatory and Development Authority (PFRDA). To receive a Rs 1.5 lakh pension, at least 40% of the maturity amount must be used for annuity investment. The remaining 60% can be withdrawn as a lump sum, entirely tax-free.

NPS account

Investing in this scheme offers tax benefits up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Additionally, a tax deduction can be claimed on annual investments up to Rs 50,000 under Section 80CCD (1B).