How to get a ₹2 lakh monthly pension from NPS in 20 years?  

To get a monthly pension of ₹2 lakh from the National Pension System (NPS) after 20 years, you need to focus on three key factors: contribution amount, asset allocation, and annuity purchase.

• Contributions: Start by contributing a significant amount early on. For instance, if you are 30 years old and invest ₹50,000 per month for 20 years, assuming an average annual return of 10%, your NPS corpus could grow to around ₹3.8 crore.
• Asset Allocation: Choose the appropriate mix of equity and debt within the NPS, with a higher equity allocation initially for better returns. Over time, you can gradually choose safer debt instruments.
• Annuity Purchase: An annuity purchase is when you pay a lump sum to an insurance company in exchange for regular income payments. Upon retirement, you must use at least 40% of your corpus to buy an annuity, which will provide a regular pension. With ₹3.8 crore corpus, allocating 40% (₹1.52 crore) for an annuity and getting a return of 7-8% annually, you can expect a monthly pension of around ₹2 lakh.