NPS Calculator: This National Pension System strategy will help you earn Rs 1.36 cr on maturity, Rs 27,352 monthly pension

NPS Calculator: National Pension System (NPS) is one of the most popular investment options for accumulating retirement funds. However, like any other government-backed small saving schemes, NPS Scheme is not free from risk as it is market linked. An NPS account holder has to open two accounts — auto and active where one is a debt account where one gets around 8 per cent return while other is stock market linked equity mode where one can expect to get around 12 per cent return in the long run. According to investment expert, if an investor chooses 40 per cent annuity and opens NPS account at the age of 30 with monthly NPS contribution of Rs 6,000 then the NPS calculator suggests that the investor will get Rs 1.36 cr maturity amount at the time of retirement and will get monthly pension of Rs 27,352.

Speaking on how to achieve this investment goal from one's NPS account Likhita Chepa, Lead Research at Capitalvia Global Research Limited said, "One can easily invest in an NPS account for thirty years as one becomes much aware of investment benefits at this age. At this age, one can also save around Rs 6,000 per month or Rs 200 per day for one's retirement fund."

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However, she said that the most important part in NPS account opening is choosing the annuity option. Chepa advised to choose 40 per cent annuity as it would give around 6 per cent returns on one's investment leading to at least 10 per cent return on one's net investment.

Source: National Pension System Trust Calculator

Assuming Chepa's NPS trick while opening the NPS account, the NPS calculator suggests that one would be investing Rs 21.60 lakh in one's NPS account and in return, the investor will get a maturity amount of Rs 1,36,75,952 or Rs 1.36 crore and Rs 27,352 monthly pension.