Private sector employees frequently struggle to save a sizable sum of money for their post-retirement lifestyle. Given the inflation, one requires a risk-free investment vehicle that produces a long-term return that outperforms inflation. Among the various products available on the market are fixed deposits, public provident funds (PPF), and the national pension system (NPS). Designed to enable subscribers to make a defined commitment toward planned savings and so secure the future in the form of a Pension, NPS is a voluntary retirement savings programme. It is an effort to find a long-term solution to the issue of giving each Indian person a sufficient retirement income.
You should start investing as early as you can if you are a private sector employee. If, for example, you began investing Rs. 4,000 per month to the NPS at the age of 26 and kept doing so until you were 60, you could receive a pension of more than Rs. 35,000 each month. This calculation is performed with the interest rate set at 11%. (Also Read: 'Holding off': Elon Musk on Twitter Blue verified badge)
As a result, if you begin investing when you are 26 years old, your total investment will be Rs 16,32,000 when you are 60. Your entire corpus would be Rs 1,77,84,886 at this stage. Given that you just contributed Rs 16,32,000 yet received around Rs 2 crore in return, this is unfathomable.
Therefore, you would receive a lump sum payment of Rs 1,06,70,932 and a pension of about Rs 35,570 every month. Therefore, as you can see, in addition to receiving a monthly pension of about Rs 35,000 after you turn 61 years old, you will also receive a one-time payment of more than Rs 1 crore that will enable you to plan your retirement years without too much worry.
