NPS (National Pension System) is a government pension scheme. This scheme based on the contribution you made till maturity and after that, you got a regular pension. The NPS calculation will show you the amount of corpus and the approximate amount of monthly pension to be received by you. Therefore the amount of corpus collected by the time you retire will depend on your returns generated and investment amount.
For the calculation the calculator needs following details:
Let us assume, Shyam who is 36 years old and is expected to retire at 60. He is investing Rs. 10000 every month in the NPS scheme. The expected annuity rate is 8%.
Must Read: NPS CONTRIBUTION – LATEST RULES AND UPDATES
|Number of invested years||24|
|Amount invested (sans interest)||Rs. 28,80,000|
|Interest earned||Rs. 57,73,258.43|
|Total amount invested in NPS||Rs. 28,80,000 + Rs. 57,73,258.43 = Rs. 86,53,258.43|
|Annual pension||Rs. 4,15,356.40|
|Monthly pension||Rs. 34,613.03|
|Withdrawable amount on maturity||Rs. 34,61,303.37|
With the help of required inputs, you will get the corpus that will be calculated by you at the time of your retirement. With the principle of the power of compounding the corpus is calculated.
The calculator will show you the complete details of your investment. It will also show you the interest earned by you, the amount invested by you during the accumulation phase of the scheme and the total amount of corpus generated at the time of maturity. Therefore NPS calculator shows the break-up of details of the amount which is re-invested to receive lump sum amount withdrawn by you and monthly pension. It also shows the amount of monthly pension that you will receive which is based on the expected returns from the annuity.
Some of the banks of India which offer pension plans
|NPS plans||6 months returns (in %)||1 year returns (in %)||3 years returns (in %)||5 year returns (in %)|
|HDFC pension fund||4||8.78||NA||NA|
|ICICI prudential pension fund||3.91||8.84||9.47||10.59|
|Kotak pension fund||4.41||9.36||9.14||10.35|
|LIC pension fund||3.64||8.6||NA||NA|
|Reliance capital fund||4.08||9.05||9.17||10.19|
|SBI pension fund||3.94||8.81||8.93||10.21|
|UTI retirement solutions||3.99||8.79||9.08||10.02|
The returns for 1 year and 6 months are absolute, whereas the returns for 5 and 3 years are compounded annually.
Anyone who is eligible to invest in NPS (National Pension Scheme) can use NOS calculator. Hence according to the rules, any Indian citizen who falls between the age group of 18-60 years can invest in this scheme.
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