Stock Market LIVE Updates: Sensex plunges over 550 points, Nifty50 near 16,800; all sectors in the red

Stock Market LIVE Updates: Indian equity benchmarks Sensex and Nifty50 suffered sharp losses on Monday after a mixed opening, amid weakness across most sectors. Losses across financial, oil & gas and automobile shares were the biggest drags on the headline indices. Broader markets also slumped with the midcap and smallcap indices down three and four percent in early deals respectively.

How much should one invest in NPS to get Rs 1 lakh monthly pension after retirement?

NPS is a social security scheme launched by the Union Government with an aim to provide steady income to individuals after retirement.

ow much should one invest in NPS to get Rs 1 lakh monthly pension after retirement?

NPS is a hybrid investment scheme  so experts say it can help young earners accumulate a large corpus for their retirement. By investing in NPS you will get a fixed monthly pension till you are alive and also a lumpsum amount at the time of retirement. A subscriber can withdraw maximum 60% of his maturity corpus from NPS as a tax-free lump sum amount

NPS is a social security scheme launched by the Union Government with an aim to provide steady income to individuals after retirement. Over the years, the PFRDA, the regulating body of pension funds in India, has been making several rule changes in the scheme to make it attractive for retail investors. It is a hybrid investment scheme (that invest in both equity and debt) so experts say it can help young earners accumulate a large corpus for their retirement by investing smaller amounts every month.

By investing in NPS you will get a fixed monthly pension till you are alive and also a lumpsum amount at the time of retirement. A subscriber can withdraw maximum 60% of his maturity corpus from NPS as a tax-free lump sum amount and with the remaining amount he/she has to buy an annuity from a life insurance company, which on average give annuity income at an annual rate of 5-6% if you choose return of premium option.

NPS gives you multiple fund options where you can choose between a mix of debt and equity where the maximum equity component cannot exceed 75% of the investment amount. According to financial planners, one can expect 10-11% annual return in the longer term if he allocates 75% of his investment in NPS to equities and 25% to debt.

So if you start investing early, as soon as you get a job, let say at the age of 24, when most people start working, in NPS then you can easily accumulate a retirement corpus of over Rs 5 crore (Check NPS calculator below) by your retirement age (60 years) by investing just Rs 300 a day or Rs 12,000 monthly. Out of the retirement corpus, you can withdraw 60% or Rs 3.05 crore as a lump sum and the remaining 40% or Rs 2.04 crore needs to be used for purchasing an annuity. Assuming 6% annuity return, you will get Rs 1 lakh monthly pension after your retirement.

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