Invest Rs 50, get Rs 34 lakhs! THIS scheme is your perfect retirement delight

New Delhi: Earning money is one thing, and investing your hard-earned sum to book great profits is another. If you want to invest money risk-free, then you have many investment options. 

Here’s an option that can help your earn Rs 34 lakhs by investing just Rs 50 per day. We are here talking about the New Pension System, which lets you invest for your retirement days. Even if you save Rs 50 a day in NPS, then at the time of retirement you will get 34 lakh rupees. Investing in it is absolutely easy and low risk. 

Invest in NPS to reap great returns 

NPS is a market-linked retirement oriented investment option. Under this scheme, your money in NPS will get invested in two instruments: stock market and debt. You can decide how much money of NPS you want to invest into equity only during the opening of the account. 

Usually, up to 75% of the money can go into equity. This means that in this you expect to get a little more return than PPF or EPF.

How to get by investing just Rs 50 daily? 

If you have just started a job, you do not have much money to invest, then it does not matter that you save Rs 50 a day and put it in the NPS. Suppose you are 25 years old at this time, invest Rs 1500 a month in NPS, that is just 50 rupees a day, and retire after 60 years, then you can get Rs 34 lakh at a 10% interest rate via NPS. It is important to note that we have assumed that you will invest in it continuously for 35 years. 

Starting of NPS investment

Age: 25 years

Investment per month: Rs 1500

Investment time: 35 years

Total investment: Rs 6.30 lakhs

Total interest you get: Rs 27.9 lakhs

Total wealth at pension: Rs 34.19 lakhs

Total tax savings: Rs 1.89 lakhs 

How much pension will you receive? 

You cannot withdraw all this money at once. NPS allows its subscribers to withdraw 60% of it. The remaining 40% will be put in the annuity. So you will be able to withdraw a lump sum of Rs 20.51 lakh and assume that if the interest is 8%, then the pension will be 9 thousand rupees every month.

Monthly pension

Annuity:                                      40%
Estimated interest rate:               8%
One time return on investment:  Rs 20.51 lakhs
Monthly pension:                        Rs  9,111

In our example, the starting age of investment was taken as 25. However, you can start investing early to earn more returns at the time of retirement. The amount of pension also depends on how much amount you are investing monthly, at what age you have started investing and how much return you are getting. The example we have taken here is taken on the estimated return. It can be different in every case.