The government-sponsored, equity-linked National Pension Scheme is one of the best and safest solutions for the above-mentioned purposes (NPS). The government created this pension accumulation investment framework to provide stability for its citizens as they age. NPS offers an attractive long-term savings channel for effective retirement preparation with safe and regulated market-based returns.
The plan uses both equity and debt instruments. By using NPS, you can save up to Rs 2 lakh in tax per year.
You can earn Rs 1.91 with a 40-year term deposit of Rs 5,000 per month. If you decide to invest the maturity money, you will get a monthly pension of Rs 2 lakh. The above mentioned monthly pension is calculated as Rs 1.43 lakh from yield and Rs 63,768 from systematic withdrawal plan. As long as the investor is alive, he gets a monthly pension of Rs 63,768.
If the investor has Rs. 5000 per month for 20 years, then you will get a maturity payment of Rs. 1.27 million. After investing the maturity amount, you can get a monthly pension of Rs 63,768 at 6% return.
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