NPS Annuity Calculator: What should be your annuity amount if you are aiming at Rs 1,05,000 monthly pension after retirement?

NPS Annuity Calculator: Financial freedom at every stage of life is important. Even when one retires, they need financial resources that can help them bear their monthly expenses. For that, they need to have a pool of money or a fund that is large enough to help them sustain for decades. There are a number of market-linked and non-market-linked schemes to create a retirement corpus. National Pension System (NPS) is one of them.

Here, an NPS subscriber can invest from 18 years of age till 75.

However, at 60 years, they get the option to withdraw up to 60 per cent of their retirement corpus.

From the rest of the 40 per cent amount, they need to purchase an annuity plan.

The NPS subscriber gets the return from this investment in the form of a monthly pension.

The return on annuity amount is not fixed. It can be anywhere from 5.25 per cent to 9.25 per cent.

In this write-up, know what will be the minimum annuity investment to get at least a Rs 1.05 lakh monthly pension in all 5 NPS categories.

Also know the minimum and maximum pension in each category that an NPS subscriber can get on that investment.

NPS offers 5 types of pensions- annuity for life with return on purchase (ROP), annuity for life without ROP, joint life annuity with ROP, joint life annuity without ROP, and family income with ROP.

Basic conditions to calculate NPS annuity amount 

Here, we will take the example of a 60-year-old private sector employee whose spouse's age is 58 years.

We are taking all NPS annuity providers for our calculations (data source: NSDL's official website).  

Minimum amount to get Rs 1.05 lakh monthly NPS pension in all categories

The minimum annuity investment to get a Rs 1.05 lakh monthly pension is Rs 1,79,00,000 (Rs 1.79 crore).

See, what is the minimum and maximum monthly pension in 5 NPS categories that this amount can help one get.

Monthly pension in annuity for life with ROP

In this NPS pension category, annuity stops on the death of the annuitant, and the purchase price (ROP) is returned to the annuitant's nominee. 

On Rs 1,79,000,00 annuity purchase, the maximum monthly pension available in this category is Rs 1,05,380.88, and the minimum is Rs 92,457.80.

Monthly pension in annuity for life without ROP pension

In this NPS pension category, annuity ceases on the death of the annuitant, and the purchase amount is not returned to the nominee.

A Rs 1,79,000,00 annuity purchase in this category will help one get a maximum monthly pension of Rs 1,35,209.44. The minimum pension will be Rs 1,13,231.30.

Monthly pension in joint life annuity with ROP

In this pension category, annuity is paid to the spouse during their lifetime, and ROP is returned to the nominee after the spouse's death.

On a Rs 1,79,000,00 annuity purchase, the maximum NPS monthly pension in this category is Rs 1,05,201.00, and the minimum is Rs 92,316.17.

Monthly pension in joint life annuity without ROP

Here, on the annuitant's death, annuity is paid to the spouse during their lifetime. If the spouse predeceases the annuitant, the annuity will cease after the annuitant's death.

On a Rs 1.79 crore annuity purchase, the maximum monthly pension available in this category is Rs 1,22,456.00, while the minimum is Rs 1,03,977.65.

Monthly pension in family income with ROP

In this type of NPS pension, the spouse gets a monthly pension for lifetime after the annuitant's death. After the spouse's death, the annuity goes to the living dependent mother and father of the deceased annuitant. 

After all these family members are covered, the annuity ceases, and the full payment is returned to the surviving children or legal heirs of the annuitant.

A Rs 1,79,000,00 annuity purchase in this category will provide a maximum monthly NPS pension of Rs 1,05,201.00 and a minimum pension of Rs 92,316.17.