{"id":20974,"date":"2025-10-26T07:46:14","date_gmt":"2025-10-26T07:46:14","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/10\/26\/want-rs-80000-monthly-post-60-this-nps-strategy-is-helping-a-retiree-achieve-it-tax-free-business-news\/"},"modified":"2025-10-26T07:46:14","modified_gmt":"2025-10-26T07:46:14","slug":"want-rs-80000-monthly-post-60-this-nps-strategy-is-helping-a-retiree-achieve-it-tax-free-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/10\/26\/want-rs-80000-monthly-post-60-this-nps-strategy-is-helping-a-retiree-achieve-it-tax-free-business-news\/","title":{"rendered":"Want Rs 80,000 Monthly Post-60? This NPS Strategy Is Helping a Retiree Achieve It Tax-Free | Business News"},"content":{"rendered":"


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Last Updated:<\/span>

Ajay Agarwal, a retired engineer, is earning around Rs 80,000 a month post-retirement using NPS.<\/h2>\n
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He relies on SLW, annuity, and other tools for tax-free income. (Representative Image)<\/p>\n<\/figure>\n

Can you earn around Rs 80,000 a month after retirement without taking big investment risks? A retired engineer from Vadodara is doing exactly that by using a smart feature of the National Pension System (NPS) called Systematic Lump-sum Withdrawal (SLW).<\/p>\n

A case study by wealth advisory firm TheFynprint documented Ajay Agarwal\u2019s strategy and highlighted how SLW can create a tax-efficient retirement income.<\/p>\n

Ajay Agarwal, 60, retired from ONGC, turned his Rs 1.2 crore retirement corpus into a steady, largely tax-free income stream. Unlike most retirees who either withdraw their savings at once or park them in fixed deposits, Ajay chose a more disciplined approach. By planning carefully and leveraging NPS, he has created a reliable monthly income while keeping control over his money.<\/p>\n

How the Plan Works<\/strong><\/p>\n

After transferring his Post Retirement Benefit Scheme (PRBS) corpus into NPS in 2020, Ajay continued contributing for five years. He set up a plan to generate Rs 90,000 per month after retirement: Rs 50,000 would come from SLW starting in 2026, while Rs 40,000 would come from a joint-life annuity.<\/p>\n

SLW allows retirees to withdraw 60 per cent of the non-annuity portion of their NPS corpus in phased intervals until age 75, while the remaining balance keeps compounding, mostly tax-free.<\/p>\n

Ajay also opted for a 6 per cent annual step-up on SLW, so his monthly withdrawals gradually increase. His corpus is invested 90 per cent in debt and 10 per cent in equity, targeting an annual return of around 9 per cent, offering a low-risk yet effective growth strategy.<\/p>\n

Diversified Income Sources<\/strong><\/p>\n

Ajay\u2019s monthly income is spread across multiple sources, making it more stable:<\/p>\n

\u2013 SLW: 40 per cent of income, mostly tax-free<\/p>\n

\u2013 Annuity: 30 per cent from a joint-life annuity paying 6.79 per cent per year<\/p>\n

\u2013 Other sources: 30 per cent from SCSS, bank deposits, and mutual funds<\/p>\n

\u201cI wanted control, low cost, and predictability. NPS gave me that,” Ajay told Business Today. He carefully manages his income to stay under the Rs 12 lakh tax bracket and avoid unnecessary taxes.<\/p>\n

Why NPS Works<\/strong><\/p>\n

Most financial planners overlook NPS because it pays no commissions, but Ajay shows it can be the backbone of a low-risk, tax-efficient retirement plan. His strategy offers compounding, flexibility, and control; three advantages few retirement tools can match.<\/p>\n

Seeing his father\u2019s success, Ajay\u2019s son has also joined a corporate NPS plan. While taxation of SLW growth remains somewhat unclear, this approach provides a practical blueprint for anyone aiming for a Rs 75,000 to Rs 80,000 monthly income after retirement without taking high-risk bets.<\/p>\n

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Business Desk<\/a><\/p>\n

A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Follow News18 on Google<\/a>. Join the fun, play QIK games on News18<\/a>. Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n
Location :<\/span><\/p>\n

Delhi, India, India<\/span><\/p>\n<\/div>\n

First Published:<\/span><\/p>\n
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October 26, 2025, 09:00 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> Want Rs 80,000 Monthly Post-60? This NPS Strategy Is Helping a Retiree Achieve It Tax-Free<\/span><\/div>\n
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Last Updated:October 26, 2025, 09:00 IST Ajay Agarwal, a retired engineer, is earning around Rs 80,000 a month post-retirement using NPS. He relies on SLW, annuity, and other tools for tax-free income. (Representative Image) Can you earn around Rs 80,000 a month after retirement without taking big investment risks? A retired engineer from Vadodara is…<\/p>\n","protected":false},"author":1,"featured_media":20975,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-20974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/20974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=20974"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/20974\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/20975"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=20974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=20974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=20974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}