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NPS pensions after retirement, Rs 1 lakh pension per month: How to get Rs 1 lakh rupees as pension per month? NPS (National Pension System), a market-linked defined contribution scheme helps one save for his/her retirement. NPS is one of the most efficient ways of boosting your retirement income and saving tax. NPS helps an individual plan for a financially secure retirement with systematic savings in a planned way.

Retirement planning is a vital part of financial decision-making. As time passes, inflation also rises, and subsisting only on savings might need to be revised for you after retirement.

Since NPS provides compounding returns, a long investment period will grow your income faster.

NPS: How to get Rs 1 lakh rupees as pension per month?

If an individual starts to invest Rs 8,700 per month in NPS at the age of 21 and invests for the next 39 years, he/she will end up generating a pension of over Rs 1,00,000 per month by the retirement age of 60 years.

How much to invest in NPS to get a Rs 1 lakh pension per month?

Here's the calculation:

Age: 21 years

Retirement age: 60

Contribution: Rs 8,700/month

Expected Return: 10%

The individual will end up with a total corpus of Rs 5,01,19,582.

If you take out the lumpsum of 60 per cent from that corpus (60 per cent is the maximum limit you can withdraw at retirement age), in that case, you will be left with an annuity of 40 per cent.

The government invests annuities in debt funds or corporate bonds where the invested amount generates a fixed income. If you get a six per cent return on an annuity, then-  

The amount invested in the annuity will be Rs 30,07,1749.

Expected monthly pension: Rs 1,00,239 per month 

Source: NPS Calculator