Now, save Rs 74 every day, get Rs 27,500 pension every month - Here's how

It is essential that retirement planning starts the minute you enter professional life. Ensuring you build an adequately large retirement corpus is vital.

National Pension System is one such option where you can invest to build a lump sump amount for retirement as well as ensure a monthly pension.

Save Rs 74 a day to build up to a crore

Saving Rs 74 every day and investing it in NPS will bring you Rs 1 crore after retirement.

You can still start planning your retirement even if you’re in your early twenties. While people that young aren’t usually working, putting Rs 74 aside isn’t a big ask.

NPS is a market-linked retirement investment option. Money in NPS is invested in either equity or debt. Equity investments happen in the share markets while debt investment occur in government and corporate bonds.

You can choose how much money is invested in equity at the time of opening the account. Generally, around 75 percent of the sum can be invested in equity. This means that NPS can get you slightly better returns than PPF and EPF.

Now, if you wish to earn a crore via NPS, there’s an easy approach to follow.

Investing Rs 74 a day, which is Rs 2230 a month, in NPS for 40 years will get you a handsome Rs 1 crore.

A return of 9 percent will create a pension corpus of Rs 1.03 crore.

Starting NPS early:

Age: 20

Monthly investment: Rs 2230

Investment period: 40 years

Estimated return: 9 percent

NPS investment ledger:

Total amount invested: Rs 10.7 lakh

Interest earned: Rs 92.4 lakh