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6.6%First documentHow Can You Use the National Pension System to Secure Retirement?Open original ↗
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Where to Invest for Pension?
A pension refers to the regular payment that you receive after you retire from your job. You will need to invest at least 40% of the corpus at age 60 in a pension (annuity) scheme.
How to Use NPS Calculator?
Finalise the Ratio of Annuity Allocation at Maturity: It represents the portion of your corpus, the amount you wish to reinvest to acquire an annuity upon maturity. It is the monthly pension payments that you will receive from the Annuity Service Provider (ASP). You must invest at least 40% of the maturity value in an annuity plan. However, if you plan to exit the scheme before 60 years, minimum 80% of your pension should be reinvested in an annuity.
Allocate for Your Pension First at 60
Your NPS scheme matures when you turn 60. After maturity, you are required to invest at least 40% of your corpus towards an annuity for a pension. Thus, the first step that you should take after maturity is to allocate the amount you desire for a pension.
How to Use NPS Calculator?
Finalise the Ratio of Annuity Allocation at Maturity: It represents the portion of your corpus, the amount you wish to reinvest to acquire an annuity upon maturity. It is the monthly pension payments that you will receive from the Annuity Service Provider (ASP). You must invest at least 40% of the maturity value in an annuity plan. However, if you plan to exit the scheme before 60 years, minimum 80% of your pension should be reinvested in an annuity.