Most investors want to make investments in such a way that they get sky-high returns as quickly as possible without the risk of losing principal money. This is the reason why many are always on the lookout for top investment plans where they can double their money in a few months or years with little or no risk. But here’s an option that can help your earn Rs 34 lakhs by investing just Rs 50 per day. Here, we are talking about the New Pension System, which lets you invest for your retirement days.
Even if you save Rs 50 a day in NPS, then at the time of retirement you will get 34 lakh rupees. Investing in it is absolutely easy and low risk.
Why You Should Invest In NPS?
New Pension System is a market-linked retirement-oriented investment option. Under this scheme, your money in NPS will get invested in two instruments: stock market and debt. You can decide how much money of NPS you want to invest into equity only during the opening of the account. Usually, up to 75% of the money can go into equity. This means that in this you expect to get a little more return than PPF or EPF. It is compulsory for government employees who joined service after 2004 and it was opened to the private sector in 2009.
NPS contributions are eligible for tax deduction under Section 80C of the Income-tax Act, 1961, up to ₹1.5 lakh and also under Section 80 CCD (1B) up to an additional ₹50,000.
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How To Get Rs 34 Lakhs By Investing Rs 50 per day?
If you have just started a job, and you keep Rs 50 a day aside to put it in the NPS, by this, you invest Rs 1500 a month. After the age of 60 years when you retire, you can get Rs 34 lakh at a 10% interest rate via NPS. It is important to note that we have assumed that you will invest in it continuously for 35 years.
Age: 25 years
Investment per month: Rs 1500
Investment time: 35 years
Total investment: Rs 6.30 lakhs
Total interest you get: Rs 27.9 lakhs
Total wealth at pension: Rs 34.19 lakhs
Total tax savings: Rs 1.89 lakhs
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Amount of Pension You WIll Receive
You cannot withdraw all this money at once. New Pension System allows its subscribers to withdraw 60% of it. The remaining 40% will be put in the annuity. So you will be able to withdraw a lump sum of Rs 20.51 lakh and assume that if the interest is 8%, then the pension will be 9 thousand rupees every month, as calculated by Zee News.
Estimated interest rate: 8%
One time return on investment: Rs 20.51 lakhs
Monthly pension: Rs 9,111
In our example, the starting age of investment was taken as 25. However, you can start investing early to earn more returns at the time of retirement. The amount of pension also depends on how much amount you are investing monthly, at what age you have started investing, and how much return you are getting. The example we have taken here is taken on the estimated return. It can be different in every case.