New Delhi: Are you concerned about your financial security after retirement? If so, you’re not alone. Planning for retirement is crucial, and the National Pension System (NPS) offers a secure and effective solution.
Starting early is key to accumulating a substantial retirement corpus. Consider this: if you begin investing just Rs. 442 daily (around Rs. 13,260 monthly) from the age of 25, you can accumulate a whopping Rs. 5 crore by the time you reach 60.
Investing for 35 years in NPS at an average interest rate of 10% will generate compound interest, significantly boosting your retirement savings. By the age of 60, your total investment will grow to a remarkable Rs. 5.12 crore.
This impressive amount might seem unrealistic considering the total investment of Rs. 56.70 lakh over 35 years. However, the power of compounding works wonders. Through this principle, you earn interest not only on your principal amount but also on the accumulated interest over time. This snowball effect leads to a substantial increase in your wealth.
While you can withdraw only 60% of the accumulated amount (approximately Rs. 3 crore) upon retirement, the remaining 40% must be invested in an annuity plan. This plan ensures a regular income stream throughout your golden years, providing financial stability and peace of mind.
Don’t delay. Start your NPS journey today and build a secure future for yourself and your loved ones.
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