By Admin 
NPS Pension Calculation: At the age of 30, most people are at that stage of their career where their income becomes stable and people start thinking seriously about planning for the future. This is the age where preparations for retirement should be started so that in future money worries can be eliminated to a great extent.
In today’s time, NPS i.e. National Pension System is considered a strong option for long term. The most common question is that if you want a pension of Rs 50 thousand every month after retirement, then how much will have to be invested at the age of 30. Let us tell you what is its calculation.
How much fund is required for a monthly pension of Rs 50 thousand?
If you want a pension of Rs 50 thousand every month after retirement. So the annual pension will be around Rs 6 lakh. In NPS, generally 40 percent of the total amount deposited at the time of retirement has to be mandatorily invested in annuity. Assume that an annuity gives an average annual return of 6 percent. In such a situation, to get an annual pension of Rs 6 lakh, annuity fund of about Rs 1 crore is required.
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This means that your total NPS corpus at the time of retirement should be around Rs 2.5 crore. So that 40 percent goes into annuity and the remaining amount can be withdrawn in lump sum. This calculation is based on long term average returns and the rules that are in place at present. Therefore these figures may fluctuate slightly.
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How much should I invest every month at the age of 30?
After the fund, now the question comes that how much amount will have to be invested every month if you start investing from the age of 30. Suppose you retire at the age of 60, that means you have about 30 years of time. If NPS gives an average annual return of 9 to 10 percent. So to create a corpus of Rs 2.5 crore, one may have to invest around Rs 12 thousand to Rs 14 thousand every month. If you increase the investment amount a little every year, for example by increasing the contribution as the salary increases, then the initial burden can be further reduced. The real advantage here is time. The sooner you start, the bigger the fund will be created with a small amount.
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