Govt Scheme: By investing just ₹ 1000, you will get a fund of 2.3 crores and a pension of 1 lakh on retirement, know how

Every parent thinks that their children should not have to face the problems that they have faced in life. For this, they try every way possible. Everyone makes arrangements for the child’s education and marriage, but if you want, you can also secure your child’s retirement life with a small investment. For this, you have to open a child’s account under the NPS Vatsalya scheme. If you start investing even ₹ 1000, then at the age of 60, your child will have a fund of 2.3 crores and he will get a pension of 1 lakh every month.

Who can open this account

NPS Vatsalya is a government scheme through which lump sum retirement fund and pension can be arranged for the child. Parents can open this account in the name of the child up to 18 years of age and start investing. The minimum limit of investment in this is Rs 1000. There is no maximum investment limit. The account is opened in the name of the child, however, till the age of 18, the account is looked after by the child’s parents or legal guardians. After turning 18, the child can handle this account himself.

Understand how the child will become a millionaire when he grows up

If you open a child’s NPS Vatsalya account at birth and invest Rs 1000 in it till the age of 18, and your child invests Rs 1000 every month in this scheme from the 19th year to the age of 60, then the total investment till 60 years will be Rs 7,20,000. Suppose he gets a return of 10% on this, then he will get Rs 3,77,61,849 only as interest and his total corpus will be Rs 3,84,81,849.

This way you will get a fund of Rs 2.3 crore and pension of Rs 1 lakh

In NPS, you have to invest at least 40% of your amount in annuity. So if your child invests 40% in annuity, then he will have to invest Rs 1,53,92,740 in annuity. In this case, he will get Rs 2,30,89,109 as retirement fund. If the annuity gives a return of 8%, then Rs 1,02,618 will be received every month as pension.

Where will the account be opened?

NPS Vatsalya account can be opened with big banks, Indian Post. However, this account will be directly regulated by the Pension Fund Regulatory and Development Authority. Those who want to open this account online can go to the eNPS platform of NPS Trust and open the account.

Opportunity for partial withdrawal 3 times till the age of 18

There is an opportunity for partial withdrawal thrice in this scheme till the child turns 18 years old. However, for this the NPS account should be at least 3 years old. In case of education, treatment of a specific disease and disability up to 75%, parents can partially withdraw a maximum of 25% of the contribution.

Opportunity to exit at the age of 18

NPS Vatsalya account is converted into a regular NPS account when the child turns 18 years old. In such a case, the child has to complete fresh KYC within three months. Subscribers can exit NPS at the age of 18 if they want, but the condition is that at least 80% of the corpus has to be reinvested in annuity, while 20% can be withdrawn as a lump sum. If the total amount is less than Rs 2.5 lakh, then the entire amount can be withdrawn at once.

The post Govt Scheme: By investing just ₹ 1000, you will get a fund of 2.3 crores and a pension of 1 lakh on retirement, know how first appeared on informalnewz.

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