Be it a government job or a private one, there will be no shortage of money on retirement. This NPS plan created a stir.

News India Live, Digital Desk: We all are working hard today so that our ‘tomorrow’ is safe. But often a question arises in our mind that “When our hands and legs stop moving and the salary stops coming, then how will we meet our expenses?” Many people postpone it for tomorrow, but the reality is that the earlier the preparations for retirement are started, the more pleasant the result. National Pension System (NPS) is a great way to overcome the worries about this future. Today we will not talk about any big investment, rather we will understand the complete details of how you can make your retirement wonderful by saving a very small amount i.e. ₹ 5000 per month. What is the magical mathematics of NPS? If your age is currently around 25-30 years and you start saving ₹ 5000 per month from today itself, then the power of compounding (compound interest) can change your future. Suppose you invest continuously for 30 years. Let’s do it. NPS can give an average annual return of 10% to 12% (as its money is invested in the market). At the rate of ₹ 5000 per month, when you reach retirement age (60 years), your total corpus can reach approximately ₹ 92 lakh to ₹ 1 crore. When and how will you get the money? The best thing about NPS is that it gives you a lump sum and also guarantees pension. 60% share: 60 percent of your total corpus (about ₹ 55-60 lakh) will be given to you at the time of retirement. You will get a lump sum amount of time, which is completely tax-free. With this money you can fulfill your dreams in old age. 40% share: The remaining 40 percent of the money goes in ‘Annuity’. This is the part from which you will continue to get fixed monthly pension throughout your life. Big relief in tax also, many people depend only on 80C to save tax. But NPS gives you a separate exemption of ₹50,000 under section 80CCD (1B). This means that along with your savings, you also save a good amount of money in income tax. How to start? Nowadays, there is no need to go to any bank. You can choose the plan of your choice (Equity or Debt) through ‘e-NPS’ sitting at home. If you do not want to take much risk, you can opt for government and corporate bonds. And if you want a little more return, then you can increase the share of equity. The reality is that in today’s time, without pension, the future is very uncertain. Rs 5000 per month might be spent on entertainment or eating out, but if the same money goes into NPS, it can become your strongest stick in old age. Don’t think, get started. Only small steps lead to big destinations.