Hi Pankaj,
At age of 30, I open my NPS(New Pension Scheme) account in the bank and keep on depositing Rs.500/- per month every year till the age of 60years. And at the end of 60 years I would invest around Rs.1,80,000/-. Then how will it be benefitted to me after 60 years? How much money will I get as a pension amount after 60 years?
Thanks in advance.
If you have understood National Pension System NPS correctly, you invest into a mix of debt, equities and govt securities. So final amount after 60 years, would be dependent on multiple factors like provided below:
NPS does not guarantee any pension amount and does not even pay monthly pension themselves. Your invested funds would have a value at retirement time. On attaining the age of 60 years, a subscriber would be required to invest minimum 40% of his/her accumulated savings value (pension wealth) to purchase a life annuity from any IRDA - regulated life insurance company. Annuity provider from whom you purchase plan would pay monthly pension thereafter.
The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60 or in a phased manner, between age 60 and 70, at the option of the subscriber.
