For many, **retirement is bliss**. It is that phase in life that is full of adventure and experiences. Retirement comes with loads of aspirations and dreams. People who have devoted their entire lives to work finally get to do new things. However, securing a financially stable future is very important to fulfill your dreams after retirement. A financially secure and comfortable retirement is the objective for many individuals. The [National Pension System (NPS)](https://enps.nsdl.com/eNPS/NationalPensionSystem.html) is one such path to a comfortable retirement. **NPS is a government retirement savings scheme that offers a fruitful way to achieve this. NPS offers flexibility, tax benefits, and attractive returns.** NPS is a steady option for retirement planning. A monthly pension of Rs. 50,000 may look like a long shot, but using the right tactics and strategies, investments, and making the most of the NPS features, an individual can achieve this milestone. In this article, we shall explore how you can enjoy a Rs. 50,000 monthly pension through NPS. 

## What is NPS?

The [National Pension System (NPS)](https://pensionbox.in/blog/What-is-NPS) is a voluntary, defined contribution towards savings for retirement that enables users to make the right decisions for the future by generating savings throughout their lives. **NPS is a defined contribution towards retirement savings schemes** through which subscribers can step forward towards increasing savings for life after retirement. NPS focuses on empowering citizens and inculcating in them the habit of saving for retirement. It is an attempt to find a long-term solution to the problem of providing adequate retirement income savings to every Indian citizen. 

The [NPS (National Pension Scheme)](https://pensionbox.in/blog/National-Pension-Scheme) is a great way to save for retirement. Anyone in the age group of 18–70 years, public or private employee, resident or non-resident, can become a part of the **National Pension Scheme program**. [Section 80CCD(2) of the Income Tax Act](https://www.bajajfinserv.in/section-80-ccd-2#:~:text=Section%2080CCD(2)%20of%20the,term%20savings%20and%20retirement%20planning) covers the contribution of an employee to the NPS. [Section 80C of the Income Tax Act](https://www.iciciprulife.com/insurance-library/income-tax/what-is-section-80c-of-income-tax-act.html#:~:text=Section%2080C%20provides%20deductions%20on,individual%20towards%20specified%20pension%20funds) covers the tax deduction of ₹1.5 lakh for self-contribution to the National Pension Scheme. [Section 80CCD(1B) of the Income Tax Act](https://cleartax.in/s/section-80-ccd-1b) covers the additional deduction of ₹50,000, which is allowed if a contribution is made towards the NPS. Hence, if you are planning your finances to save for the future and have a peaceful life after retirement, you must take this into account.

## Types of NPS accounts

NPS gives you two types of investment accounts: the [NPS Tier I account and the NPS Tier II account](https://pensionbox.in/blog/Difference-between-NPS-Tier-I-and-Tier-II-Accounts). 

- **1. Tier I account:** NPS Tier I accounts are mandatory and must be opened by every individual who wishes to be a part of the NPS scheme. 
- **2. Tier II account:** The NPS Tier II account is optional. You can choose to open an NPS Tier II account after you have opened a Tier I account. NPS Tier II accounts come with various benefits.

## Investment options with NPS

**You can invest in NPS in two ways: active or auto**. Someone with appropriate knowledge of the market who can distinguish between different investments choose the best ones and take responsibility for the allocation of funds can choose the active way of investing. Active choice is the way of investing in which you can make choices as per your preferences. 
 
As the name suggests, an auto-choice is one in which an automatic fund allocation decision is made. This choice is perfect for those who want to avoid any hassle and do not wish to take responsibility for fund allocation themselves.

## Estimating the corpus required

Pre-estimating the amount that you would require to achieve a monthly pension of ₹50,000 is essential. For this, PensionBox has simplified some much-complicated calculations for the users, it gets simple at every step after you download the [PensionBox app](https://pensionbox.in/getstarted?download=true?utm_source=whatsapp&utm_medium=social&utm_campaign=whatsapp_campaign). Through **My Plan, you can set your numbers, age of retiring, place of retiring, and things to do after retiring, this will help you get more detailed estimates through the  AI-enabled insights.**

Also, using [PensionBox](https://pensionbox.in) to the best, get access to the [NPS Calculator](https://pensionbox.in/calculators/nps-calculator) in the resources which is 10 times simpler than any other calculators present out there, to give you the best and most realistic numbers without any extra effort. 

Meanwhile, here are some tips you would like to achieve your set goals.

## How to achieve a monthly pension of ₹50,000 with NPS
 
### Start early 

The power of compounding works better when contributions or investments to NPS are started at an early stage. This gives you more time for your money to grow. For instance, if you start investing in your 20s, say at the age of 25, and retire at 60, you have 35 years to build your corpus.
 
### Make regular contributions

Regular contributions to NPS can help allocate money and can help take you a step forward towards a monthly pension of ₹50,000. 
 
### Choose the right allocation of assets

When you choose the right asset allocation, it can make a huge difference in your finances. A higher allocation to equities has the potential to provide greater returns.
 
### Making the most of the tax benefits

NPS offers significant tax benefits under [Section 80C and Section 80CCD(1B) of the Income Tax Act](https://cleartax.in/s/80c-80-deductions). It allows you to claim deductions up to ₹2 lakh on your contributions. This ultimately reduces your taxable income and increases your investment potential.

Securing a ₹50,000 monthly pension can transform the lives of many. Especially after retirement, when maintaining a lifestyle along with fulfilling dreams is the goal of many, a monthly pension of ₹50,000 can be of great help. However, securing this amount with NPS may require regular savings, smart asset allocation, and making the most of the tax benefits offered by NPS. When an individual starts early, makes regular contributions, and chooses the right investment options, they can build a steady and robust corpus to enjoy a stable and comfortable retirement. And to assist and make lives easier, [PensionBox](https://pensionbox.in) is always with you every step of the way!

For many, retirement is bliss. It is that phase in life that is full of adventure and experiences. Retirement comes with loads of aspirations and dreams. People who have devoted their entire lives to work finally get to do new things. However, securing a financially stable future is very important to fulfill your dreams after retirement. A financially secure and comfortable retirement is the objective for many individuals. The National Pension System (NPS) is one such path to a comfortable retirement. NPS is a government retirement savings scheme that offers a fruitful way to achieve this. NPS offers flexibility, tax benefits, and attractive returns. NPS is a steady option for retirement planning. A monthly pension of Rs. 50,000 may look like a long shot, but using the right tactics and strategies, investments, and making the most of the NPS features, an individual can achieve this milestone. In this article, we shall explore how you can enjoy a Rs. 50,000 monthly pension through NPS. 

How to get ₹50,000 monthly with NPS by PensionBox?

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