Get Rs 5 Crore for Your Retirement by THIS Simple Invest Planning

As an employee, concerns about our future financial stability often cross our minds.

One common worry is the absence of a job after reaching the age of 60 and how we will manage our daily expenses.

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This is why retirement planning becomes crucial, and it’s important to start thinking about how much money is required and where to invest it.

The National Pension System (NPS) emerges as an excellent choice for retirement planning,

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enabling individuals to gradually invest and ultimately receive substantial funds upon retirement.

Achieving 5 Crore Rupees at Retirement: The Magic of Rs 442

This particular formula is especially applicable to young individuals who have recently begun their professional careers.

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Let’s assume you aspire to accumulate 5 crore rupees by the time you retire at the age of 60, having secured a job before turning 25.

Starting from the age of 25, by saving a mere Rs 442 from your salary each day and investing it in NPS, you can achieve the desired 5 crore rupees by the time you retire.

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Transforming Rs 442 into 5 Crore Rupees

Saving Rs 442 daily equates to depositing approximately Rs 13,260 each month.

If you commence this investment pattern at the age of 25, you will have invested for a span of 35 years until reaching 60.


Assuming this money is invested in NPS, with an average interest rate of 10%, your investment will grow to a remarkable 5.12 crore rupees by the time you turn 60, thanks to the power of compounding.

Harnessing the Power of Compounding

By consistently investing Rs 13,260 per month in NPS over 35 years, your cumulative investment will amount to approximately Rs 56,70,200.


You may wonder how this investment of around Rs 56.70 lakh can accumulate to 5 crores. The answer lies in the power of compounding.

Not only will you earn interest on your principal amount each year, but you will also receive interest on the interest already earned.

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Hence, by the time you have invested Rs 56.70 lakh over 35 years, the total interest accumulated would amount to approximately Rs 4.55 crore, resulting in a total investment of 5.12 crore rupees.

Managing Retirement Funds: Understanding Withdrawal Options

It is important to note that upon maturity of the NPS at the age of 60, you can only withdraw 60% of the accumulated amount.

This implies that you will be able to withdraw around Rs 3 crore, while the remaining Rs 2 crore will need to be invested in an annuity plan.

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The annuity plan ensures a steady stream of income throughout your life, providing financial security during retirement.

Pre-Retirement Withdrawal: A Limited Possibility

NPS matures only when you reach 60 years of age, meaning you cannot withdraw funds from your NPS account before that.

However, certain circumstances such as emergencies or medical needs might allow partial withdrawals for purposes like building a house or funding children’s education.

It’s important to keep in mind that withdrawal rules may change, so it’s crucial to familiarize yourself with the NPS regulations before considering withdrawals.

Ideally, it is advisable to withdraw NPS funds only after retirement to ensure a peaceful and financially stable old age.


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