NPS Calculator

The National Pension Scheme (NPS) calculator is a convenient online tool that helps individuals estimate the pension amount they can expect upon retirement.

NPS Calculator

The total value of your NPS after 0 Years will be

---

Min. Annuity Investment (40%): ---

Total Investment

₹ 0

Returns Earned

₹ 0

Please follow the steps below to use this NPS calculator –

  1. Enter Your Monthly Investment: If you plan to invest ₹5,000 every month into your NPS account, type 5000 in the first field.
  2. Input your expected annual return rate (%): Think of this as the average return you expect per year from your NPS investments. If unsure, you can use a typical estimate like 10.
  3. Enter your current age (between 18 and 60): This helps calculate the number of years left until retirement at age 60. Just put in your age — like 30, if you’re 30 years old.
  4. Click the “Calculate” button: The calculator will instantly compute your total corpus at retirement and the mandatory annuity portion (40%), and show a visual breakdown of your investment vs returns.

About National Pension Scheme

NPS Scheme

The National Pension System (NPS) is a government-sponsored retirement savings scheme in India, designed to provide financial security and stable income to individuals post-retirement. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Key Features of NPS:

  • Voluntary: Open to all Indian citizens aged between 18 and 70 years.
  • Flexible: Individuals can choose their own investment options and pension fund managers.
  • Portable: The account remains active across jobs and locations within India.
  • Tax Benefits:
    • Contributions up to ₹1.5 lakh per annum qualify for tax deduction under Section 80C.
    • An additional ₹50,000 can be claimed under Section 80CCD(1B).
  • Low Cost: NPS is one of the lowest-cost investment options in India.

Types of NPS Accounts:

  1. Tier-I Account (Pension Account):
    • Mandatory for NPS subscribers.
    • Withdrawals are restricted; primarily meant for retirement savings.
    • Partial withdrawal allowed under specific conditions.
  2. Tier-II Account (Investment Account):
    • Optional and flexible.
    • Allows unlimited withdrawals.
    • No tax benefits under 80C.

How It Works:

  • Subscribers contribute regularly to their NPS account.
  • Funds are invested in various asset classes (Equity, Corporate Bonds, Government Securities).
  • On retirement (at 60), up to 60% of the corpus can be withdrawn lump sum (tax-free), and the remaining 40% is used to purchase an annuity for regular pension.

Who Should Invest in NPS?

  • Salaried individuals seeking long-term retirement planning.
  • Self-employed professionals wanting structured retirement income.
  • Anyone looking for a tax-efficient, regulated investment option.

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