As National Pension System primarily focuses on retirement savings, it may be argued one is too young to start savings for one’s retirement. But, we insist you to take a look at the below table, as it will make you think again.
Given the current rate of inflation and cost of a good lifestyle that you would like to have post retirement, assuming you would require 1 cr on retirement; by investing in NPS how much pension will you actually get?
Take a look: (let’s highlight the monthly savings column)
If you require 1 cr on Requirement.
| Starting Age (Yrs) |
Time Frame (Yrs) |
Monthly Savings Required
() |
Amount Invested
(Lac) |
Corpus
(Cr.) |
| 25 |
35 |
3,000 |
12.6 |
1.01 |
| 30 |
30 |
5,000 |
18.0 |
1.03 |
| 35 |
25 |
8,500 |
25.5 |
1.04 |
| 40 |
20 |
14,000 |
33.6 |
1.00 |
| 45 |
15 |
26,000 |
46.8 |
1.03 |
| 50 |
10 |
50,500 |
60.6 |
1.00 |