NPS Calculation: Invest Rs 5,000 monthly to get Rs 44,793 pension – Build Rs 1.11 crore retirement corpus for your spouse with tax benefits

NPS Calculation: If you’re planning to secure your spouse’s financial future, the National Pension System (NPS) provides an effective and reliable solution. A well-structured NPS investment can help your spouse receive a monthly pension of up to Rs 45,000 and build a retirement corpus exceeding Rs 1.11 crore by the age of 60. Invest in NPS today to ensure a financially secure retirement for your spouse.

How to get started

Opening an NPS account in your spouse’s name is simple and flexible. Contributions can start from as less as Rs 1,000, and you can choose to invest money every month or once a year, depending on your preference and convinience. While the account matures at 60, the new rules now allow it to be extended up to the age of 65.

Example of how the numbers add up

Consider this scenario: if your spouse is 30 years old and you invest Rs 5,000 every month in their NPS account, and the investment earns an average annual return of 10%, they would build a corpus of approximately Rs 1.12 crore by the age of 60. Out of this, they could withdraw about Rs 44.79 lakh as a lump sum. The remaining Rs 67.19 lakh could be used to purchase an annuity, which would give them a monthly pension of around Rs 44,793 for the rest of their life.

Pension Projection:

Age when investment begins: 30 years

• Investment duration: 30 years
• Monthly contribution: Rs 5,000
• Estimated average return: 10% per year
• Total corpus at maturity: Rs 1,11,98,471
• Lump sum withdrawal: Rs 44,79,388
• Amount used for annuity: Rs 67,19,083
• Estimated annuity rate: 8%
• Monthly pension: Rs 44,793

Safe and regulated investment

The NPS is a government-backed pension scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). The funds are managed by experienced and qualified professionals appointed by the government. While returns are market-linked and not fixed, the scheme has historically delivered annual returns in the range of 10–11%.

Tax benefits that add value

In addition to retirement benefits, NPS investors can also avail significant tax deductions. Under the old tax regime, one can claim a deduction of up to Rs 1.5 lakh under Section 80C, along with an additional Rs 50,000 under Section 80CCD(1B), bringing the total benefit to Rs 2 lakh annually. The new tax regime also allows a deduction on the employer’s contribution of up to 14%.

Planning for your spouse’s retirement doesn’t need to be complicated. A disciplined approach using NPS can help create long-term financial security and peace of mind. With the right steps today, you can ensure your spouse lives a worry-free, independent life during retirement.

(Disclaimer: Don’t consider this as an investment advice. Do your own due diligence or consult an expert for financial planning)