- LATEST
- WEBSTORY
- TRENDING
PERSONAL FINANCE
National Pension System (NPS): Smart solution to beat inflation and ensure retirement security
National Pension System (NPS) can help beat inflation and ensure retirement security.
Updated : Feb 28, 2023, 06:49 AM IST | Edited by : Raunak Jain
 "nps, nps calendar, nps account, about nps scheme, about nps in hindi, nps benefits, benefits of nps, best nps scheme")
TRENDING NOW
)
Before Pakistani TikTok star Minahil Malik, actress Rida Isfahani's MMS video leaked online by...
)
Hinduja Group firm gets key approval for acquisition of Anil Ambani's debt-ridden Reliance Capital
)
Gandii Baat, XXX actress Aabha Paul sets Instagram on fire with hot photos
)
Amid divorce rumours with Aishwarya Rai, Abhishek Bachchan tells Amitabh Bachchan: 'I hope people don't...'
)
Nayanthara Beyond The Fairytale: Who is Nayanthara's ex-lover who asked her to quit cinema?
)
Amitabh Bachchan praises Abhishek Bachchan's new film, netizens ask 'kash ye Aishwarya...'
)
7 times XXX, Gandii Baat actress Aabha Paul crashed the internet by flaunting her sexy curves
)
After separation from ex-wife Saira Banu, AR Rahman makes major announcement: 'I am deeply grateful to...'
)
Shweta Tiwari's wedding photos with Bigg Boss 13 contestant Vishal Aditya Singh go viral, here's the truth behind them
)
This Pakistani Influencer's private video leaked online, days after Minahil Malik and Insha Rehman's clips
)
Meet Mathira Khan, Pakistani influencer whose private video leaked after Minahil Malik, Imsha Rehman
)
Mukesh Ambani's Jio to get tough competition from BSNL, plan provides unlimited benefits for less than Rs...
)
'Good to be back': After breaking up with Malaika Arora, Arjun Kapoor reunites with his 'partner-in-crime after ages'
)
From swanky cars to multi-crore houses: Step inside AR Rahman's ultra-lavish lifestyle with net worth of Rs 17280000000
)
AR Rahman, Saira Banu's daughter Raheema shares cryptic note after parents' divorce: 'Your lord is going to...'
NPS Scheme: As inflation continues to rise, the cost of living is becoming increasingly expensive. The prices of essential commodities such as petrol, diesel, and vegetables are skyrocketing, leaving many people struggling to manage their household budgets. In such challenging times, it is natural to worry about the future, especially life after retirement. Fortunately, there are several solutions available that can help beat inflation and potentially make you a millionaire in a few years.
One such solution is the National Pension System (NPS), a government retirement scheme launched by the Central Government on January 01, 2004, initially for government employees and later opened to those working in the private sector. By investing in NPS, you not only benefit from tax exemptions, but you can also create a retirement corpus and a source of fixed income every month.
To join NPS, any citizen of India above 18 years of age can open either a Tier 1 or Tier 2 account, with a minimum initial investment of Rs 500. The objective of NPS is to accumulate funds for retirement, with pension fund managers investing in instruments like equity, corporate bonds, and government securities. NPS offers decent returns that are currently higher than the inflation rate, making it an attractive option for retirement planning.
If you are 30 years old now and plan to retire at 60, investing Rs 5,000 in NPS every month could potentially help you build a corpus of over Rs 1 crore by the time you retire. Based on this calculation, the estimated return on investment is 10 per cent, with a net pension wealth at maturity of Rs 1.11 crores, of which Rs 93.9 lakh is invested interest. With an annuity purchase of 50 per cent and an estimated annuity rate of 6 per cent, you could receive a monthly pension of Rs 27,996 at the age of 60.
It is important to note that these figures are approximate and subject to change based on various factors. However, the NPS remains a sound long-term investment option for retirement planning, given its potential to beat inflation and provide financial security in old age.
Also read: ESIC Scheme: Details of benefits for employees including free treatment and family pension
