If you are 40 years old and have not started retirement planning yet, then there is no need to worry. You can still secure your old age through NPS i.e. National Pension System. This scheme will arrange for a lump sum retirement fund as well as pension for you. Know how much investment you will have to make to get more than 1 crore balance in the bank account and at least Rs 80,000 pension every month at the age of 60?

NPS i.e. National Pension System is a government scheme which has been started keeping in mind the retirement life of the people. Any Indian citizen can invest in this scheme and can arrange for pension with a good lump sum amount in old age. NPS is a market based scheme, so its return is not fixed, but in the long run, very good returns can be earned through it. You can take 60 percent of the total amount invested in NPS in lump sum after turning 60 years old, that is, this amount is your retirement fund in a way. While at least 40 percent of the amount has to be used as annuity. You get pension from this annuity. How much pension you will get depends on your annuity.

If you are starting investing in NPS from the age of 40 and want to get more than 1 crore fund and pension of Rs 80,000, then you will have to adopt a special strategy for this. You have to start investing Rs 20,000 per month in Balanced Lifecycle Fund through NPS and have to put a top-up of 10% every year. In this way, continue investing continuously for 20 years. In this way, you will invest a total of Rs 1,37,46,000 in 20 years.

If you get a return of 10% on this, then you will get Rs 1,70,86,448 as interest. In this case, if the invested amount and interest are added, then it will be Rs 1,37,46,000 + 1,70,86,448 = Rs 3,08,32,448. Out of this, if you take 60% of the amount as retirement fund, then you will get Rs 1,84,99,469 as retirement fund. You will have to invest 40% of the amount i.e. Rs 1,23,32,979 in annuity. You will get pension from this annuity only.

You have invested 40% of the amount i.e. Rs 1,23,32,979 in annuity and if it gives a return of 8%, then you will get Rs 82,220 as pension every month.

Balanced Lifecycle Fund i.e. BLC invests in three major categories like equity, corporate bonds, and government bonds. In BLC, 50% of the investment is kept in equity till the age of 45 years. After this, as the age of the subscriber increases, the investment in equity gradually decreases. By the age of 55, the investment in equity remains 35% and more attention is given to safe investments like government bonds.