NPS Invest: Are you planning for a peaceful retirement? If yes, the National Pension System (NPS) can be a great option for you. It is a government-backed retirement savings scheme that allows you to invest a small amount every month and build a large pension fund over time. In this article, we will explain how investing just Rs 5000 per month in NPS can help you get a monthly pension of Rs 1 lakh after retirement.
What is NPS Invest?
NPS Invest National Pension System (NPS) is a long-term investment plan started by the Government of India. It is regulated by PFRDA (Pension Fund Regulatory and Development Authority). Any Indian citizen between 18 to 70 years can join NPS.
The idea is simple you keep investing every month until retirement, and then after 60 years of age, you can withdraw part of the fund and get a regular monthly pension.
NPS Calculation Rs 5000/Month Investment
Let’s break down how Rs 5000 per month can turn into Rs 1 lakh monthly pension after retirement.
Monthly Investment: Rs 5000
Yearly Investment: Rs 60,000
Investment Duration: 30 Years (from age 30 to 60)
Expected Return on Investment: 10% per year (average NPS return)
Total Corpus at Retirement: Around Rs 1.14 Crore
How the Corpus Grows
Here’s how your money will grow over time:
| Year | Monthly Investment | Total Invested Amount | Approx. Value at 10% Return |
| 10 | Rs 5000 | Rs 6 Lakhs | Rs 9.45 Lakhs |
| 20 | Rs 5000 | Rs 12 Lakhs | Rs 37.90 Lakhs |
| 30 | Rs 5000 | Rs 18 Lakhs | Rs 1.14 Crore |
This happens due to compounding. Your money earns returns, and those returns also earn more returns over time.
How Much Pension Will You Get?
At age 60, you can withdraw 60% of the total corpus as a lump sum and the rest 40% must be used to buy an annuity (pension plan).
● Total Corpus: Rs 1.14 Crore
- 60% Lump Sum Withdrawal: Rs 68.4 Lakhs (tax-free)
- 40% Used for Annuity: Rs 45.6 Lakhs
Now, if you invest Rs 45.6 Lakhs in an annuity plan that gives 10% annual return, you can get:
Monthly Pension = Rs 38,000 to Rs 1 Lakh, depending on return and annuity option
Some private annuity plans give higher monthly returns. For example:
- At 8% return → Rs 30,000/month
- At 10% return → Rs 45,600/month
- At 12% return → Rs 65,000 to Rs 1 Lakh/month (in high-return plans)
You can choose joint annuity (with spouse), or increasing annuity, based on your preference.
Key Benefits of NPS
- Tax Benefits
- Get tax deduction up to Rs 1.5 lakh under Section 80C
- Extra Rs 50,000 deduction under Section 80CCD(1B)
- Total tax saving up to Rs 2 lakh per year
- Get tax deduction up to Rs 1.5 lakh under Section 80C
- Flexible Investment
- Start with just Rs 500/month
- No upper limit on how much you can invest
- Start with just Rs 500/month
- Safe and Transparent
- Regulated by Government
- Low charges, professional fund management
- Regulated by Government
- Multiple Fund Choices
- Choose between equity, corporate bonds, and government securities
- Choose between equity, corporate bonds, and government securities
- Partial Withdrawal Allowed
- For emergencies like medical treatment, education, or marriage
- For emergencies like medical treatment, education, or marriage
How to Open an NPS Account?
You can open an NPS account online in simple steps:
- Go to https://enps.nsdl.com
- Click on “Register”
- Enter your PAN, Aadhaar, and mobile number
- Complete e-KYC
- Set your password and choose investment options
- Start investing online
You’ll receive a PRAN (Permanent Retirement Account Number).
Conclusion
NPS is one of the best retirement savings plans in India. If you start investing early even a small amount like Rs 5000 per month you can enjoy a secure and happy retirement with Rs 1 lakh monthly pension. The power of compounding and disciplined investing can help you build a massive corpus.
