Finance Minister Nirmala Sitharaman has launched the NPS Vatsalya Scheme. This scheme is a saving-cum-retirement scheme. By investing in this scheme, you can also accumulate a huge fund for your children.
In this article, we will tell you how much monthly pension your child will get if you invest Rs 1000 annually.
Finance Minister Nirmala Sitharaman launched the NPS Vatsalya Scheme on 18 September 2024. This scheme was announced in the general budget. This scheme has been made for children. Under the scheme, parents and guardians will invest every year for the child, the benefit of which will be available to the children after they turn 18 years old. This is a saving-cum-retirement scheme. Actually, in this scheme, children will also get the benefit of pension after their retirement age.
How much will you have to invest every month
There is no maximum investment limit in NPS Vatsalya Yojana, but at least Rs 1,000 must be invested annually. Partial withdrawal facility is also available in this scheme. Apart from this, pension benefits are also available.
Let us tell you that this scheme is designed for children below 18 years of age. Parents or guardians invest in this scheme. But, when the child turns 18, the parents exit the scheme and the fund of NPS Vatsalya is converted into NPS Tier-1.
When does the scheme mature
NPS Vatsalya Fund matures after the child turns 18 years old. If the scheme is to be continued, it can be continued by doing KYC of the child. It works like a normal NPS scheme after the KYC of the child. However, if the entire fund has to be withdrawn after 18 years, then its rules are different.
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If the amount in the fund is less than Rs 2.5 lakh, then full withdrawal is allowed. If the amount is more than Rs 2.5 lakh, the investor can withdraw only 20 per cent and the remaining 80 per cent can be purchased as an annuity, which will be given to the child every month as pension.
Understand the calculation of NPS Vatsalya
Many investors have a question about NPS Vatsalya that how will the investment and interest be calculated in it. If you invest Rs 1,000 annually for your child, you will get a return of about 10 percent every year. According to this calculation, you have invested Rs 2.16 lakh in 18 years. You will get an interest of about Rs 3,89,568 on this investment amount. That is, after the child turns 18, a fund of Rs 6,05,568 will be accumulated.
If the fund is continued even after the child turns 18, then the fund will become worth Rs 3.83 crore at the age of 60.
How much pension will you get
After 60 years, if you buy an annuity plan from the amount of NPS Vatsalya account, it gives 5 to 6 percent interest. In such a situation, after 60 years, the investor will get an annual interest of about 19 to 22 lakh rupees. Talking about pension, about 1.50 lakh rupees can be received every month as pension.
