Many professionals worry about their life after retirement, and they all end up making financial mistakes that don’t turn out to yield any benefits in the long run. However, if you are a 40-years-old, the National Pension System (NPS) can be a great way to protect your future by giving you a decent retirement fund and monthly pension.
Why Choose the National Pension Scheme?
The NPS has been introduced by the central government and is a versatile scheme that can be availed by both employees in the government and private sectors. It is to be noted as under:
- Extensive Coverage: This scheme is available for people from 18 to 70 years of age.
- Made for NRIs: NRI too can participate in the Oberoi scheme, which totals other avenues to increase flexibility.
- Economy of investment: Even if you started with us at the age of 40 in any situation, you could systematically keep on building a corpus for retirement. Example: You pay, say, ₹20,000 month on month from today; 10% increase every year and at the end of 20 years, you will have a large corpus for your retirement.
The Financial Benefits of NPS
Substantial Retirement Fund
When you retire at the age of 60, your entire investment (₹1.37 crore) would increase to approximately ₹1.62 crore, assuming 10% returns per annum.
Attractive Monthly Pension
That could exactly be INR 1 lakh per month benefit under NPS after retirement. The regular earnings can be a beautiful supporter with any financial difficulty you will face and will bring you to a stress-free retirement.
Conclusion:
The National Pension System is a new method in which one can plan a handsome future for his/her retirement plans. High returns, flexible, and inclusive-National Pension Scheme could be the newest retirement mate for everybody, be it a central or private employee or NRI.
