NPS Calculator: ₹15,000 Monthly Savings Can Help You Get ₹2.23 Lakh Pension

However, experts point of view to stick to the debt-equity ration in the ratio of 40:60 or 50:50 for the long term. With this debt-equity exposure, the NPS interest rate can be expected to be around 10 per cent per annum over the long term. He said that if a person invests NPS SchemeHe will also get income tax benefit. He said that if an investor invests One can expect to get Rs 15,000 per month in NPS account after growing 30 years 2.23 Monthly pension after 60 years of age.

On how to get 10 per cent NPS returns in the long term, Kartik Jhaveri, Manager – Wealth Management at Transcend Capital said, “If an individual takes debt-equity exposure in his NPS account in the ratio of 50:50, then its equity yield will be Around 12 per cent in long term and debt yield in long term would be at least 8 per cent. Since the exposure is in the ratio of 50:50, an equity return in NPS would be 6 per cent and debt return would be 4 per cent. Account. Those equity and debt returns Adding up, the net NPS interest rate earned over the long term would be 10 (6 + 4) per cent. He added that if the NPS account holder maintains a debt-equity ratio of 40:60, the equity yield in that case would be 7.20 per cent (12 per cent). x 0.60) and the debt return would be around 3.20 per cent (8 x 0.40).

Karthik Jhaveri of Transcend Capital said that NPS account holders also get income tax benefits. He said that a person can claim income tax exemption under section 80C up to a maximum of Rs. Investment of Rs 1.5 lakh in a financial year in NPS account. Apart from this one can claim additional 50,000 income tax exemption under section 80CCD(1B) on one’s NPS investment.

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On how to get maximum pension using NPS scheme, Pankaj Mathpal, MD & CEO, Optima Money Managers said, “In an NPS scheme, it is mandatory for an investor to buy an annuity using at least 40 per cent of the maturity amount. But, My suggestion to the NPS account holder is to invest the lump sum amount received after the maturity of the NPS plan in SWP (Systematic Withdrawal Plan) and get around 8% return on the same for long term.This will help in maximizing the beneficiary of the NPS scheme. It will help. The benefits of NPS are available to a great extent.”

On how SWP can replace one’s monthly pension, Pankaj Mathpal said, “If a person invests 15,000 per month in the NPS scheme, keeping the debt-equity risk ratio in the ratio of 40:60. Then after investing for 30 years, one will get a monthly pension of approx. 68,380 and around 2.05 crores in lump sum amount as maturity. If the person invests in 2.05 crore lump sum amount in SWP for 25 years, then expect at least 8 percent return on one’s SWP amount 2.05 crore, one would be able to get 1.55 lakh per month. Adding of NPS Pension 68,000 and this 1.55 lakh monthly SWP, one’s net monthly pension would drop to approx. 2.23 lakh ( 68,000+ 1,55,000).

On SWP Schemes Pankaj Mathpal has listed the following SWP schemes:

1]ICICI Prudential Balanced Advantage Fund;

2]Aditya Birla Sunlife Balanced Advantage Fund; And

3]Canara Robeco Equity Hybrid Fund.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.