Want knowledge on NPS (New Pension Scheme)

Sumita Sinha 1
Viewed 1269

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.

national-pension-system pension-amount new-pension-scheme nps
1 Answers

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:

  1. Fund manager
  2. Market performance
  3. Ratio of split among equity, debt and securities

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The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60 or in a phased manner, between age 60 and 70, at the option of the subscriber.

Pankaj Batra5212
Related