For best returns, NPS subscriber should start investing as early as possible. The expected returns on investments can be calculated online on the NPS calculator of National Pension System Trust.
The National Pension System (NPS) over the years has been incorporating several changes for the convenience of its customers. The NPS was launched in January 2004 particularly for government employees. However, in 2009 it was opened to all categories. According to the rules, any person can contribute regularly to the pension account during his working life. He can also make a partial withdrawal and leave the remaining money to draw income after retirement.
The NPS gives an option to open two types of accounts. The first account is a pension account while the second one is a voluntary savings account. Those having a pension account can open a second account - available as an add-on - offline or through the NPS portal.
For best returns, NPS subscriber should start investing as early as possible. The expected returns on investments can be calculated online on the NPS calculator of National Pension System Trust.
According to the NPS online calculator, a 30-year-old subscriber investing Rs 5000 per month can get up to Rs 22,279 monthly pension and Rs 45.5 lakh as a lump sum.
And an investment of Rs 10,000 per month from the age of 30 may fetch Rs 45587 per month pension and Rs 91.1 lakh as a lump sum.
Note: These numbers are based on an assumed rate of return of 10 per cent and an annuity of 6 per cent.
If you are interested in making your retirement corpus bigger, there is the facility to increase your monthly contribution towards NPS
How to open NPS account
A subscriber form needs to be filled and submitted with KYC papers. Once the initial investment (Rs 500 or Rs 250 monthly) is done a PRAN – Permanent Retirement Account Number (PRAN) is generated. A one-time registration fee of Rs 125 is charged for this.
If you want to open an NPS account online, you need to connect your account with your PAN, Aadhaar / or mobile number. You can validate the registration using the OTP sent to your mobile after which a PRAN will be generated.
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