After retirement, everyone needs regular income, but not investing in the right place can lead to difficulty in getting regular income or not getting the required amount of money every month. Here we will tell you how you can get a pension of Rs 50,000 every month. Apart from this, you can also get a lump sum amount of crores of rupees after retirement.
We are talking about investing in the National Pension System (NPS)… Here you can invest crores of rupees every month. You can also make monthly pension. NPS is an investment scheme that offers both a lump sum and pension to investors at retirement. Immediately after retirement, you can withdraw 80% of the amount as a lump sum, while the remaining 20% can be used to buy annuity. After purchasing an annuity, you will start receiving pension every month.
How much amount will be required for a monthly pension of Rs 50,000?
A monthly pension of Rs 50,000 means you need an annual pension of Rs 6 lakh. Now, let us assume that you are getting 6 percent interest rate on the annuity every year. This means that to get a pension of Rs 50,000, you will need a corpus of Rs 1 crore.
Annual Pension – Rs 50,000 Pension x 12 = Rs 6,00,000
Assuming 6 percent annuity rate
Total Annuity – ₹6,00,000 ÷ 6% = ₹1,00,00,000 (Rs 1 crore)
This means that to get a monthly pension of Rs 50,000, you will have to buy an annuity worth at least Rs 1 crore.
Now the question arises that under the rule of 80% lump sum and 20% annuity, how much corpus will be required to buy an annuity of Rs 1 crore? Also, at what age and with what monthly investment can you deposit this amount? Let us understand in details…
If you want to buy an annuity of Rs 1 crore for a monthly pension of Rs 50,000, then you should have a total corpus of Rs 5 crore in your NPS account. This is because the government has made a rule that after retirement, non-government employees can withdraw 80% of the amount together and invest the remaining 20% in annuity. Now let us know how much you will have to invest in NPS every month.
How much investment is necessary at the age of 25?
By investing at the age of 25, you get a chance to invest for 35 years.
You will have to invest ₹14,000 – ₹15,000 every month.
In this, an average annual interest rate of 10% has been considered.
After 60 years, the total corpus will be ₹5 crore.
Out of this, 80% i.e. ₹ 4 crore will be available together.
The remaining 20% will be annuity, which is ₹1 crore.
After this, you will get a pension of ₹50,000 every month.
Similarly, if you start investing in NPS at the age of 30, you will need to invest ₹22,000 to ₹24,000 every month, and if you start investing at the age of 35, you will need to invest ₹35,000 to ₹38,000 to get a pension of ₹50,000.
