NPS Monthly Pension: National Pension System (NPS) is a retirement pension scheme, where one can contribute up to the age of 70. At retirement, one gets a lump sum amount and the monthly pension. The scheme also provides tax benefits of up to a maximum of Rs 2 lakh under Section 80C and 80CCD (1B) of the Income Tac Act, 1961.
Retirement Planning: National Pension System (NPS) is a market-linked retirement scheme, where you contribute from the age of 18 to 70. At retirement, you get a lump sum and a monthly pension. You can withdraw a maximum of 60% of your corpus and have to purchase annuities to get a monthly pension from the remaining 40%. A monthly contribution of Rs 10,000 starting at 25 years of age can help you accumulate 3,82,82,768 at the retirement age of 60, even if you get a 10 per cent return on your investments. But if you delay your retirement by five years and keep contributing until you reach 65, you can increase your corpus and monthly pension by 67%. Know how!
