Calculating NPS Annuity and maximizing pension by 3 times with ELSS | LLA NPS Ep#4 Financial Advice

by | Jan 15, 2024 | Retirement Annuity | 44 comments

Calculating NPS Annuity and maximizing pension by 3 times with ELSS | LLA NPS Ep#4 Financial Advice




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Mandeep makes yet another video on NPS and this time, he compares it with ELSS. Let’s see the NPS annuity calculation and understand whether the ELSS can give us a higher pension than NPS ever can.
You will learn:
1. What is an annuity and what are annuity plans offered by top insurance companies in India?/
2. How to calculate NPS pension?
3. A practical example comparing NPS with ELSS
4. What are other alternatives to generate a monthly income after retirement which are even better than annuity plans?

Read the blog in English:

NPS calculator:
HDFC annuity calculator:
SBI annuity calculator:

0:00 Can ELSS give a better pension than NPS?
2:01 What is annuity?
4:43 Elss vs NPS (practical example to understand pension/annuity calculation)
12:45 Better ways to generate pension, than annuity
14:26 Mudde ki baat
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#nps #annuity #npscalculation #LLA…(read more)


LEARN MORE ABOUT: Retirement Annuities

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In today’s fast-paced world, planning for retirement has become more important than ever. With the rising cost of living and increasing life expectancy, it is essential to find an investment tool that not only helps in building a substantial corpus but also provides a regular income during the post-retirement years. The National Pension System (NPS) is one such investment option that has gained immense popularity in recent years.

One of the key aspects of NPS that attracts investors is the flexibility and control it offers in terms of fund management and regular income post-retirement. In addition to the regular pension, NPS offers the option of investing in Equity Linked Savings Scheme (ELSS) to boost the retirement corpus. ELSS is a type of mutual fund that primarily invests in equity and equity-related instruments, providing the potential for higher returns over the long term.

When it comes to calculating the pension amount under NPS with ELSS investments, it is important to understand the process and the benefits it offers. The formula for calculating the annuity amount under NPS with ELSS investments involves several factors such as the amount invested, the investment tenure, and the expected rate of return. While ELSS may involve higher risk due to its exposure to equity markets, it also offers the potential for higher returns compared to traditional investment options.

The basic concept is simple – by investing in ELSS under the NPS, investors can potentially receive a pension amount that is three times higher than traditional NPS investments. This is possible due to the power of compounding and the potential for higher returns offered by equity markets over the long term. It is important to note that while ELSS investments may involve higher risk, they also offer the potential for higher rewards, making it an attractive option for those looking to build a substantial retirement corpus.

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To understand the potential benefits of investing in ELSS under NPS, it is essential to seek the advice of a financial expert who can provide personalized guidance based on individual financial goals and risk tolerance. By analyzing the investment tenure, expected rate of return, and other relevant factors, a financial advisor can help determine the optimal investment strategy to maximize the pension amount under NPS with ELSS investments.

In conclusion, NPS with ELSS investments offers the potential for a significantly higher pension amount compared to traditional NPS investments. By harnessing the power of equity markets and compounding, investors can build a substantial retirement corpus and secure a comfortable income during their post-retirement years. However, it is important to carefully evaluate the risks and rewards associated with ELSS investments and seek professional financial advice to make informed investment decisions. With the right approach and guidance, NPS with ELSS investments can be an effective tool for building a secure and comfortable retirement.

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44 Comments

  1. @pulkitjain8135

    equity is pretty much clear on your channel what about 25% debt

  2. @aj_hammy

    Happy Birthday, Mandeep! And thank you for making the janta jagruk.

  3. @manishagupta1991

    Please make a detailed video on the various charges of NPS account, from account opening to contribution to pop charges.

  4. @rpsctoday4275

    Annuity khridne ka process bty sir

  5. @saurabhsingh-ng1fy

    If someone opened nps account but not want to contribute.

  6. @GauravSingh-le8mq

    All that doesn't matter as these pensions amounts will not make any sense after 30 years

  7. @ARNABOSS

    is 12% return from ELSS guaranteed? NO! but NPS return is much more predictable and realistic!!!

  8. @vishalpandit4805

    Bhai ek imp sawaal tha maan lijiye mera corpus bana 1 crore to mere baad mere bacho ko 1 crore pura milega ya us pe 30℅ tax cut kar unhe 70 lakh hi milega. Ye har kisi ko janna jaroori h

  9. @subi_rocks

    You ignored the most important thing, majority of the people who are investing for retirement plan belong to 30% tax bracket.

    With that in mind let me recalculate this example for you.

    To invest 3k per month or 36k in a year you have to earn 51.5k before tax.
    If you invest 51.5k in NPS your corpus will become 1.64 crore. That's 10 lacs less with lower risk.

  10. @vinayrana8327

    But sir government employees k liye to nps m 14% contribution gov deti h to hmara nps m monthly contribution 5497+7694= 13191 itna hota h but ELSS m to hmara only 5497 hi jayega

  11. @RKKLBL

    Railway employees have to compulsarily opt for NPS. What can we do now?

  12. @alokmitra456

    I invest Tear I at age of 62+years. How much I can I invest it.

  13. @rajathshetty5785

    HI Mandeep, What about tax benefits of extra 50K ?? Still ELSS is better

  14. @Manndel

    How can I break my anuity fund

  15. @subhamgarai9371

    But if invested in ELSS till the age of 60, all investments from the age of 57-60 will be stuck as ELSS has a lock-in of 3 years.
    And this is how the withdrawn time in both cases will vary to justify the calculation.

  16. @sandeepsandhu2154

    In NPS employer will also contribute which will increase your corpus amount more than double and in ELSS only you will contribute .

  17. @vkgupta

    Mere pass 2 suggestions hai:-
    1.) ELSS me agar aap 35 years tak investment kiye SIP mode me to 35 year ke baad total paisa nhi withdraw kr sakte hai kyoki 35 year me jo investement hoga uske liye bhi 3 years wait krna hoga kyoki 3 years locked in hota hai. Means, 35 year ke baad investment band kiya toh 38 year me total paisa aap nikal paoge.
    2.) NPS me 30% extra tax ka save krne ka benefit hai jo ki ELSS me nhi hai. Baki kitna % intrest milega wo koi nhi janta. ELSS and NPS dono market based hai.

  18. @azgharkhan4498

    @LabourLawAdvisor Whats purchase price?

  19. @mriduldas9409

    after 35 years interest rate will same 4 to 5% or drop to 1 to 2%

  20. @owaislatief8805

    Suggestions for betterment of National Pension Scheme (NPS):
    Allow upto 100% investment in Equity Scheme.
    Within Equity Scheme option to allocate funds among Small/Mid/Large Cap mutual funds.
    Inclusion of Gold and Silver as investment option, via ETF/Bonds.
    Investment in Annuity Pension Plan optional, not mandatory.
    Option of 100% withdrawal of Corpus on retirement.
    Special Corporate Health Insurance Plan for retirees.
    Increase in employer contribution from existing 14% to 24%.
    Unbiased research from independent and reputed Firms/Institutions for discovery of better/improved Pension Plan.

  21. @trilokbohra6329

    Hi Sir
    I hope you're doing well. I wanted to talk about my NPS retirement plan that I started in February 2023.

    At the beginning, I put in INR 50,000, and every month afterward, I've been depositing varying amounts like INR 10,000 or INR 15,000. Initially, I chose the auto choice option, but my profits were quite low. In the last two months, I switched to the Active choice, allocating 70% to Equity. However, I saw a drop of about INR 1,500 last month. So, I adjusted and lowered the Equity to 60%, but unexpectedly, I lost INR 14,000, and now I'm in a negative profit situation. I've also chosen the HDFC pension fund.

    Since I'm 40 years old, I'm not sure whether I should go back to the auto choice like before or stick with active choice and reduce the amount in Equity.

    Your advice would be really helpful. Could you please suggest which option would be better for me? pls suggest

    Thank you very much.

  22. @Game555kvp

    Jaldi karenge to fayda hai mostly 30 to 35 main invest karte hai

  23. @rakeshgill6767

    YOU ARE A LIFE SAVER TO ENTIRE INDIA… WHERE CORPORATERS AND OTHERS JUST WANT TO MANUPULATE US WITH DIFFERENT SCEMES YOU ALWAYS ADVICE US BEST SOLUTION….PLEASE KEEP GOING SIR. YOU ARE REDUCING FEAR INSIDE REGARDING FINANCE GRADUALY DAY BY DAY.
    THANK YOU

  24. @kailashyadav5907

    I work in merchant navy can i open NPS or PPF account??? Please reply sir

  25. @ibcbadabusinessibcpankajpa5796

    Main au small bank ka online transaction karta hu,mujhse 25 july 2023 ko kisi aur ko payment transfer karna tha jo galati se jodhpur vidyut vitaran nigam me chala gya.koi electricity board me jawab nahi de raha h,kya karu.AEN XEn dono bol rahe h refund nahi hoga.amount kuch 10 lakh ka h.kya katu

  26. @virenshah1902

    How can we check my current annuity plan like Annuity for life with ROP?

  27. @abhiteshsingh8965

    Or agar Banda 60 se pehle he tapak jayee too…

  28. @sukanyachoudhury6174

    I feel NPS will be better because long term tax can increase to even to 30% or our tax bracket in the future 30 yrs following its trend in the past while NPS mostly will be tax free. Till few years back, there was no long term tax on MFs but now we have 10% so you never know if it's increased to 30% in the future.

  29. @prabhjot4413

    hi i need a advice ,… i am govt emplo and have a nps from past 3.5 years but due to better oppotunies i left my service now i dont know what to do with nps

  30. @ShaileshFav

    Unrealistic comparison.. what is guarantee of 12 to 15 % return on ELSS

  31. @kaushaljha9720

    There is a huge gap in calculation, as tak saving of 15 K per year will be there in NPS. If I nvest 1250 per month in SIP and expect 12 percent, that amount will be 68 lakh and after LTCG, it will be nearly 60 lakh.

  32. @GodKnowsWhoAmI

    Do i need to invest 2 lac to get the 50k tax benefit or can i just invest 50k in NPS.

    I have a second question. If i have only 4 lac in my NPS account, when can i withdraw it, considering there no annuity needed for less than 5 lac.

  33. @titantitan4103

    This guy is always biased towards equity investment, irrespective of how much beneficial is non-equity investment. I believe it is way more riskier to get attracted by 12-15% returns as theoretical numbers for equity returns and invest all your savings in equity. Better would be to put some portion in equity, some portion in non-equity based on one's risk appetite. Some guaranteed income is always better than all equity based Income which can potentially lose all your money too if market crashes. Choose wisely! Don't fall trapped by these youtube channels who always say invest in equity.

  34. @VikshitBhartiya2047

    Equity markets mein MF mein 12-15% Normal bolte hey lekin hota kya hey ki wnha 8-10% bhi itna accha nahi mil pata returns and Index funds bhi beat nahi kr sakte hey to kya kre safe option select kre NPS ka ya ELSS ka ya fir PPF ka

  35. @GauravGupta-on6nd

    Hello Sir, Please make a video, how to take pension from NPS at maturity. What is the process of it.

  36. @life4u566

    Gappe bandh kro itna nhi milta

  37. @namanjain9060

    Initial ke 50k ka tax exemption jo mil raha hai usko bhi to consideration me lo …..aur bhai agar ELSS me 12 ya 15% milega to iska matlab market out performed so is hisaab se NPS me bhi to return bhadega

  38. @rajashekarp7697

    Very good information, but you did NOT consider the tax savings on the NPS amount being deductaed at Source, which is 30% upfront tax savings!! Please throw some light on this.

  39. @sachinpandey3474

    Can nps contribution amount per month change… Suppose I was investing 2k per month after 5 years want to invest 3k per month… Is this allowed?

  40. @sachinpandey3474

    What happened in case of death during nps installment?.

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