Know your NPS pension amount: What will be your estimated monthly income on Rs 1 crore investment in annuity?
National Pension System (NPS) is a popular retirement pension option India, where government as well private sector employees can contribute starting age 18 till 75. One make lump sum or fixed monthly contribution (in the form of SIP) in NPS. At 60 years of age, they have the option to withdraw up to 60 per cent of their retirement corpus as lump sum and needs to purchase annuity from the rest of the 40 per cent. When they purchase annuity, they broadly have 5 options.
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Annuity for life with ROP (Return of purchase price)
Where on the annuitant's death, the annuity amount ceases and the purchase price is returned to the nominee.
Annuity for Life without ROP
Where on annuitant's death, the payment of the annuity will cease and the purchase amount will not be returned to the nominee.
Joint life annuity with ROP
Where on annuitant's death, the annuity is paid to the spouse during their lifetime, and the purchase price is returned to the nominee after the death of the spouse.
Joint life annuity without ROP
Where on the death on annuitant, annuity is paid to the spouse during their lifetime. If the spouse predeceases the annuitant, payment of the annuity will cease after the death of the annuitant.
Family income with ROP
Where on annuitant's death, their spouse will get the pension for a lifetime. After the spouse's death, the annuity payment will go to the living dependent mother and father of the deceased annuitant. After the coverage of these family members, the annuity payment will cease, and the 100 per cent payment will be returned to the surviving children or legal heirs of the annuitant.
Know you monthly NPS pension
In this gallery, we will calculate the monthly pension amount for a 60-year-old, whose spouse's age is 58 years, and who spends Rs 10,000,000 (Rs 1 crore) to purchase annuity. Here's how much monthly pension they will get under-
| Annuity Service Provider - Scheme Name | |||||
| (With ROP) ₹ | (Without ROP) ₹ | ||||
| MAX Life Insurance Co. Ltd | |||||
| IndiaFirst Life Insurance Co. Ltd | |||||
| HDFC Life Insurance Co. Ltd | |||||
| Aditya Birla Sun Life Insurance Co. Ltd | |||||
| Kotak Mahindra Life Insurance Co. Ltd | |||||
| Life Insurance Corporation of India |
Chart Source: CRA-NSDL