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. 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 will get a pension of 1 lakh every month.

Who can open this account?

NPS Vatsalya is a government scheme, through which a lump sum retirement fund and pension can be arranged for the child. Parents can open this account in the name of a child up to 18 years of age and start investing. The minimum limit of investment in this is 1000 rupees. There is no limit on maximum investment. The account is opened in the name of the child, however, the child's parents or legal guardians look after the account till the age of 18. 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 NPS Vatsalya account for your child at the time of his 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 the age of 60 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 is how you will get a fund of 2.3 crores and a pension of 1 lakh.

In NPS, you have to invest at least 40% of your share in annuity. In such a situation, if your child invests 40 percent in an annuity, then he will have to invest Rs 1,53,92,740 in the annuity. In such a situation, he will get Rs 2,30,89,109 as a retirement fund. If you get a return of 8% on an annuity, then you will get Rs 1,02,618 as a pension every month.

Where will the account be opened?

NPS Vatsalya account can be opened with big banks, Indian Post. However, this account will be regulated directly 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
This scheme provides an opportunity for partial withdrawal 3 times till the child turns 18. However, for this the NPS account should be at least 3 years old. In the 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
The NPS Vatsalya account is converted into a regular NPS account when the child turns 18. In such a situation, the child has to complete fresh KYC within three months. At the age of 18, subscribers can exit NPS if they want, but the condition is that at least 80% of the corpus has to be reinvested in the annuity, while 20% can be withdrawn as a lump sum. If the total amount is less than Rs 2.5 lakh, the entire amount can be withdrawn at once.

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