NPS Calculator: Indian citizens who contribute to the country’s workforce look for several schemes, which will help them save money and provide returns without having much risk. This holds especially true for those who want a stable future after their retirement, for the purpose of which several forms of investments are accessible to them across private and government sectors. The National Income System (NPS) is one of the more popular retirement schemes. NPS is a retirement saving option where individuals can contribute a monthly amount to withdraw regular income after retirement.
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Launched initially for only government employees, the Centre has now extended the scheme for those working in private sectors and every citizen who wants to voluntarily opt for it. The NPS is jointly offered by the Pension Fund Regulatory and Development Authority (PFRDA) and the government of India, and acts as a stable savings against one’s retirement.
NPS Eligibility
A National Pension Scheme account can be opened by:
– A citizen of India, whether resident or non-resident
– Applicant should be between 18 to 70 years of age as on the date of submission of his/her application and
– Applicant should comply with KYC norms prescribed by the scheme
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NPS Calculator: How to Use It
– To use the NPS calculator, first go to the link: https://www.npstrust.org.in/content/pension-calculator
– Next, enter your date of birth
– Now, enter your amount of monthly contributions and the age till which you would like to contribute
– Enter your expected return on investment and annuity return
After all this is done, you will be able to view your monthly pension, annuity value and lump sum value at the right side of your computer scheme
NPS Scheme: How to Get Rs 50,000 Pension
If a person joins the NPS at the age of 25 and starts contributing Rs 6,500 a month. The total contribution will be Rs 27.30 lakh till the time of retirement. Given the expected 10 per cent return annually, the total investment will grow into Rs 2.46 crore. Now, if the NPS subscriber converts 40 per cent of the corpus into an annuity, the value will be Rs 99.53 lakh. Assuming the annuity rate of 10 per cent, the monthly pension can be Rs 49,768. Not only this, the NPS subscriber will get a lumpsum amount of about Rs 1.50 crore.
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Benefits of NPS or National Pension Scheme
Low Cost: NPS is considered to be the world’s lowest cost pension scheme. Administrative charges and fund management fee are also lowest.
Simple: All you need to do is to open an account with any one of the POPs being run through all Head Posts Offices across India and get a Permanent Retirement Account Number(PRAN)
Flexible: The applicant can choose his/her own investment option and Pension Fund or select Auto choice to get better returns.
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Portable: Applicant can operate an account from anywhere in the country and can pay contributions through any of the POP-SPs irrespective of the POP-SP branch with whom the applicant is registered, even if he/she changes his/her city, job etc and also make contribution through eNPS. The account can be shifted to any other sector like Government Sector, Corporate Model in case the subscriber gets the employment.
