It is very important to plan for retirement. Today we will talk about the best retirement instrument NPS. Today we will understand how if you deposit a little money every month, you will have a regular income even after retirement. Here one question is that if you are investing Rs 10,000 every month, then how much pension will you get after retirement?

Let us assume that you are 30 years old now and you deposit Rs 10,000 every month in NPS account. In this way, your annual investment will be Rs 1.20 lakh. In the next 30 years, you will deposit a total of Rs 36 lakh in this way.

At the time of retirement, your total corpus would be around Rs 2,26,04,879, out of which Rs 1,90,04,879 would have been received from interest only. This is the power of compounding, due to which the money keeps on increasing.

When you retire, you will have two options. Either you invest all your money in an annuity plan and start getting pension from it. Or withdraw 60 percent of the amount and make an annuity plan with the remaining 40 percent. At retirement, at least 40 percent of the NPS has to be invested in annuity plan. We are assuming that you have got an average return of 10 percent on your investment.

If you invest 40 percent of your total corpus of Rs 2,26,04,879 i.e. Rs 90,41,950 in annuity, then your pension will be somewhat less. Let us assume that you will get about 7-8 percent annual interest on it. In such a situation, your pension will be around Rs 6,32,936-7,23,356 annually i.e. Rs 52,745-60,280 monthly.

If you invest your entire corpus for pension, then you will get a very good pension every month. If you get 7-8 percent interest on the total corpus of Rs 2,26,04,879, then your annual pension will be around Rs 15,82,340-18,08,390. On the other hand, if you look at it on a monthly basis, then your pension will be around Rs 1,31,860-1,50,700.

This calculation has been done assuming an ideal situation. Here we are assuming that by the age of 30, the person would have got a good job and he would have started planning for his retirement. If you want to know the pension according to your requirements, then you can calculate by increasing or decreasing the age on this basis. Remember, the sooner you start investing, the more benefits you will get on retirement.