There are many occasions during the job when you think that after retirement, you should start your own work. But as soon as you calculate the money after retirement, then after hitting your mind, you start working again. Or many times, there is tension of retirement while working in a private job. In such a situation, what should be done so that even in a private job, one can get the pleasure of pension.

For this, it is most important to make a retirement plan at the right time. NPS is a good option for retirement from which you can get a fixed amount every month. If you invest Rs 5000 every month in this scheme, then you can get a pension of Rs 22,000 after retirement.

Who can get NPS

Anyone in the age group of 18 to 65 years can start investing in NPS. The investment in NPS is managed by the pension fund manager. The Pension Fund Regulatory and Development Authority (PFRDA) appoints the Pension Fund Manager. PFRDA is the regulator of National Pension Scheme.

The PFRDA was set up by the government in 2003. You can choose from a total of 7 Pension Fund Managers. These include LIC Pension Fund, HDFC Pension Management Company, SBI pension fund.

One can invest in pension funds till the age of 60 years. After that you have to buy an annuity plan. You can buy an annuity plan from any of the six annuity providers. These include HDFC Life Insurance Company, LIC, ICICI Prudential Life Insurance. You will get pension every month from annuity providers.

A person of 30 years can get a pension of Rs 22,279 per month by investing only Rs 5,000 in NPS every month. Apart from this, he will also get a lump sum amount of Rs 45,5 lakh. He has to invest an amount of Rs 5,000 till the age of 60 years. An annual interest rate of 10 per cent and an annuity rate of 6% has been estimated for this estimate.

You can check it yourself with the pension calculator available on the NPS website. If you want to invest more amount every month, then with the help of calculator, you can find out the pension on it.

Tax benefits are also available on investment in NPS. If you are employed, you can get deduction of Rs 50,000 per annum by investing in NPS under section 80CCD (1B). This is different from the deduction of Rs 1,50,000 lakh available under 80C.