NPS Vatsalya Calculator: Your child will become a millionaire! Start investing from Rs. 1000

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NPS Vatsalya Calculator: If you want your child to become financially strong in the future, now this dream can be fulfilled by investing just Rs 1000 monthly. The sooner you invest in the National Pension System (NPS) Vatsalya Yojana in the name of your children, the more your children’s future will be financially strong.

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Start investing from ₹1000

According to the NPS Vatsalya calculator, if a parent starts investing from the time of their child’s birth – let’s say the child is born on May 1, 2025 – and puts just ₹1,000 into the scheme every month, this small amount can turn into a huge sum.

Under this scheme, if ₹ 1000 is invested continuously per month for 18 years, the total investment will be ₹ 2,16,000. But assuming 10% annual return, this amount will increase to ₹ 6,01,909.

A fund of Rs 4 crore will be ready.

The NPS Vatsalya scheme also provides an option to withdraw up to ₹2.5 lakh from this fund at the age of 18 and invest the remaining amount in a pension scheme. If the same investment is made continuously till the age of 60, the estimated pension fund can reach ₹4 crore (₹4,00,59,576) – meaning your child can become a millionaire at the age of 60.

Pension will continue to be received

As per NPS rules, you are required to keep at least 40% of the funds reserved for Annuity. With this, you will continue to receive pension on 40% of the money deposited. After 60 years, whatever the rate of annuity is at that time, this money will get interest and will generate pension from it. The remaining 60% of the money can be withdrawn. The funds for annuity can also be increased, due to which the pension amount increases.

(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. rightsofemployees recommends its readers and viewers to consult their financial advisors before making any financial decisions.)

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