National Pension System, popularly known as NPS, is a government scheme that has been designed by the government to secure the old age of common people. Through this scheme, you get a good lump sum fund and you also arrange for a pension for yourself every month. NPS was initially started only for government employees. However, later it was opened to all the citizens of the country. Know the important things related to this scheme and understand how you can get more than a Rs 50,000 pension every month from this scheme.

Know what is NPS
NPS is a market-linked scheme, that is, whatever you contribute to it, its return is decided according to the market. There are two types of accounts in this scheme, Tier 1 and Tier 2. Tier 1 account can be opened by any person but Tier-2 account can be opened only if you have a Tier-1 account. You can take 60% of the total amount invested in NPS as a lump sum after turning 60 years old, that is, this amount is your retirement fund in a way. While at least 40% of the amount has to be used as an annuity. You get a pension from this annuity. How much pension you will get depends on your annuity.

This way you will get more than 50 thousand pension
Suppose you start investing in NPS at the age of 35, then you will have to invest in this scheme continuously for 60 years, that is, you will have to invest in the scheme for 25 years. To get more than 50 thousand pensions every month, you will have to invest at least Rs 15,000 every month. According to the NPS Calculator, if you invest Rs 15,000 every month continuously for 25 years, then your total investment will be Rs 45,00,000. But at the rate of 10%, the interest on this will be Rs 1,55,68,356.

This way you will have a total of Rs 2,00,68,356. If you use 40% of this amount as an annuity, then at the rate of 40%, Rs 80,27,342 will be your annuity and you will get Rs 1,20,41,014 as a lump sum. If you get an 8% return on the annuity amount, then you will get a pension of Rs 53,516 every month.