Know Your NPS Annuity: How much do you need to invest to get Rs 90,000 monthly pension in all 5 NPS categories? Get calculations
National Pension System (NPS) Annuity Calculator: When an NPS account holder reaches the retirement age of 60, they get the option to withdraw up to 60 per cent of their retirement corpus. From the rest of the 40 per cent, they purchase annuity, return from which help NPS subscribers get a monthly pension.
NPS Monthly Pension Calculation, Retirement Planning: National Pension System (NPS) is a prominent retirement scheme among new-age investors. The scheme started in 2004 for central government employees was opened to private sector employees, individuals, and self-employed in 2009. The NPS subscriber can start their contribution at the age of 18 and can contribute till 75. The government is set to launch NPS Vatsalya for minors on Wednesday (September 18, 2024). At 60 years of age, an NPS subscriber can withdraw up to 60 per cent of their retirement corpus and needs to purchase the annuity from the rest of the amount. NPS provides 5 types of pensions. In this write-up, we will tell you the minimum annuity investment amount that can help you get at least Rs 90,000 monthly pension in all 5 NPS pension categories.
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NPS: Types of pensions
NPS provides 5 types of pensions to NPS account holders- annuity for life without return on purchase (ROP), joint life annuity with ROP, joint life annuity without ROP, and family income with ROP.
NPS annuity pension conditions
To standardised our calculations, we are taking the example of a 60-year-old private sector employee with his spouse age as 58. Our source of calculation is the NSDL's official website.
Minimum NPS annuity amount to get Rs 90,000 monthly pension
As per the NPS pension service provider's list available on NSDL's official website, the minimum amount to get Rs 90,000 monthly pension in all NPS categories is Rs 1,54,00,000.
Minimum NPS annuity amount to get Rs 90,000 monthly pension
Shriram Life Insurance Co. Ltd. and MAX Life Insurance Co. Ltd are two companies which are providing at least Rs 90,000 monthly pension in 5 NPS categories on a Rs 1,54,00,000 investment. Know the NPS pension types and the minimum and maximum pension that you will get on Rs 1,54,00,000 investment.
Monthly pension in annuity for life with ROP
In this type of NPS pension, the annuity amount ceases on the annuitant's death and the purchase price is returned to the nominee.
Monthly pension in annuity for life with ROP
On a Rs 1,54,000,00 (Rs 1.54 crore) investment in annuity, the best available NPS pension under this category is Rs 90,495.00. The lowest pension amount is Rs 74,191.
Monthly pension in annuity for life without ROP pension
In this type of pension, annuity payment ceases on the annuitant's death and the purchase amount (ROP) is not returned to the nominee.
Monthly pension in annuity for life without ROP pension
Here a Rs 1,54,000,00 annuity investment is providing the best available NPS pension as Rs 1,19,245.00, while the lowest pension is Rs 98,397.
Monthly pension in joint life annuity with ROP
In this NPS pension, the annuity amount is paid to the spouse during their lifetime, and the purchase price is returned to the nominee after the spouse's death.
Monthly pension in joint life annuity with ROP
In this category, the best available NPS monthly pension is Rs 90,508.00, while the least is Rs 72,359.
Monthly pension in joint life annuity without ROP
In this pension option, on the death of the annuitant, annuity is paid to the spouse during their lifetime. However, if the spouse predeceases the annuitant, the annuity payment will cease after the death of the annuitant.
Monthly pension in joint life annuity without ROP
The best NPS pension under this category is Rs 1,05,353.00, while the lowest is Rs 83,612.
Monthly pension in family income with ROP
In this NPS pension, on the annuitant's death, the spouse gets the pension for lifetime. After the spouse's death, the annuity goes to the living dependent mother and father of the deceased annuitant.
Monthly pension in family income with ROP
After all these family members are covered, the annuity payment stops, and the full payment is returned to the surviving children or legal heirs of the annuitant.
Monthly pension in family income with ROP
In this category, the best available pension is Rs 90,508.00, while the lowest is Rs 72,359.
Monthly NPS pension on Rs 1.54 cr annuity purchase
