NPS Annuity Calculator: What should be your annuity amount to get at least Rs 70,000 monthly pension in all 5 categories?
NPS Pension Calculator: NPS offers 5 types of pensions to its subscribers- annuity for life without return on purchase (ROP), joint life annuity with ROP, joint life annuity without ROP, and family income with ROP.
Retirement Planning: National Pension Scheme (NPS) is a retirement scheme opened to government and private employees, self-employed, and individuals. The scheme provides market exposure up to 75 per cent. It can help one build a large corpus if they stay in their NPS investment for a long period. The investment age in NPS is from 18 years to 75 years. The NPS Tier I account also provides tax benefits up to Rs 2 lakh in a financial year. At 60 years of age, NPS subscribers get the option to withdraw their retirement corpus. They can withdraw up to 60 per cent as a lump sum. From the rest 40 per cent amount, they need to purchase an annuity plan. The return from the annuity plan helps them get the monthly pension. In this write-up, get to know what should be your annuity amount to get at least Rs 70,000 monthly pension in each of the 5 NPS pension categories.
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Types of NPS pension
NPS offers 5 types of pensions to its subscribers- annuity for life without return on purchase (ROP), joint life annuity with ROP, joint life annuity without ROP, and family income with ROP.
NPS pension conditions
In our calculation, we are taking the example of a 60-year-old private sector employee with 58 years of spouse. We are considering all present annuity providers in India for our calculations.
NPS annuity amount
The minimum annuity investment to get at least Rs 70,000 monthly pension in all 5 categories is Rs 1,20,000,00. Though this amount will help you get that much monthly pension in all 5 NPS pension categories only in a couple of annuity plans. Read to know more!
Annuity for life with ROP
This is a type of NPS pension where, on the annuitant's death, the annuity amount ceases and the purchase price is returned to the nominee.
Annuity for life with ROP pension
With a Rs 1,20,000,00 (Rs 1.20 crore) investment, the best available NPS pension under this category is Rs 70,646.4. The lowest is Rs 57,811.
Annuity for Life without ROP
Here, on the annuitant's death, the payment of the annuity ceases and the purchase amount (ROP) is not returned to the nominee.
Annuity for Life without ROP pension
In this NPS pension category, the best available monthly pension is Rs 92,918.00. The least is Rs 74,397.
Joint life annuity with ROP
In this NPS pension, the annuity is paid to the spouse during their lifetime, and the purchase price is returned to their nominee after the death of the spouse.
Joint life annuity with ROP pension
In this category, the best available NPS monthly pension is Rs 70,526.00, while the least is Rs 56,383.
Joint life annuity without ROP
In this NPS pension, on the death of the annuitant, the annuity amount is paid to the spouse during their lifetime. If the spouse predeceases the annuitant, the annuity payment will cease after the death of the annuitant.
Joint life annuity without ROP pension
The best available NPS pension under this category is Rs 82,093.00, while the least is Rs 64,802.
Family income with ROP
In this type of NPS pension, on the annuitant's death, the spouse will get a pension for 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 stop, and the full payment will be returned to the surviving children or legal heirs of the annuitant.
Family income with ROP pension
The best available NPS pension under this category is Rs 70,526.00, while the least is Rs 56,383.
Monthly NPS pension on Rs 1.20 cr annuity purchase
| (With ROP) ₹ | (With ROP) ₹ | (With ROP) ₹ | (Without ROP) ₹ | (Without ROP) ₹ | |
| Aditya Birla Sun Life Insurance Co. Ltd | |||||
| Bajaj Allianz Life Insurance Co. Ltd | |||||
| Canara HSBC Life Insurance Co. Ltd. | |||||
| Edelweiss Tokio Life Insurance Co. Ltd | |||||
| HDFC Life Insurance Co. Ltd | |||||
| ICICI Prudential Life Insurance Co. Ltd | |||||
| IndiaFirst Life Insurance Co. Ltd | |||||
| Kotak Mahindra Life Insurance Co. Ltd | |||||
| Life Insurance Corporation of India | |||||
| MAX Life Insurance Co. Ltd | |||||
| PNB Metlife India Insurance Co. Ltd | |||||
| SBI Life Insurance Co. Ltd | |||||
| Shriram Life Insurance Co. Ltd. | |||||
| Star Union Dai-ichi Life Insurance Co. Ltd | |||||
| TATA AIA Insurance Co. Ltd |