NPS Pension Calculator: How you can boost your monthly pension from Rs 78,000 to over Rs 2 lakh by using this simple trick
NPS offers many benefits. Some of them include low maintenance costs, compounding interest, tax benefits, portability, and phased withdrawal among others.
NPS or National Pension Scheme is a voluntary, portable and flexible pension scheme that helps investors save money for their future or retirement. Under NPS, you can also save some tax under Section 80CCD (1B).
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How to open an NPS account?
To open an online NPS account, you can visit the eNPS portal of the CRA of your choice to open an NPS account online.
What is PRAN?
When a citizen applies to open an NPS account, they get a unique Permanent Retirement Account Number (PRAN).
What is phased withdrawal?
Subscribers can withdraw their lump-sum amount in phases over a period from 60 years to 75 years.
NPS benefits
NPS offers many benefits. Some of them include low maintenance costs, compounding interest, tax benefits, portability, and phased withdrawal among others.
Open an account under your spouse's name
You can open a NPS account in the name of your spouse. As per convenience, you get the option to deposit money every month or annually. NPS account can be opened in the name of spouse with even Rs 1,000. NPS account matures at the age of 60 years. Under the new rules, if you want, you can keep running the NPS account till the wife turns 65 years of age.
NPS voluntary mode
The NPS voluntary model is open to all Indian citizens, including those residing abroad, aged 18 to 70.
NPS: Types of accounts
NPS is divided into two tiers: Tier-I account and Tier-II account.
NPS: Pension calculator
This pension calculator shows the estimated pension and lump-sum amount you may anticipate at maturity based on regular monthly payments, a percentage of the corpus reinvested to purchase an annuity, and projected rates for investment returns and annuity selection.
NPS: How to get almost 3 times more pension?
Suppose, you are 25 years old and started investing Rs 5,000 in NPS now and have been continuing till 60. To get more pension, you will have to do 10 per cent top-up after every year.
NPS top-up trick
You will invest a total of Rs 1,62,61,462 in 35 years. Suppose, you are getting 10 per cent returns on NPS then you will get a total amount of Rs 6,09,74,198. The returns on this investment will be Rs 4,47,12,736.
Get a monthly pension of above Rs 2 lakh
Investment in annuity plan: 60%
Annuity rate: 7%
Annuity amount: Rs 3,65,84,519
Lump sum withdrawal amount: Rs 1,74,12,726
Monthly pension: Rs 2,13,410
Calculations without top-up
Age: 25 years
Investment period: 35 years
Monthly investment: Rs 5,000
Total investment in 35 years: Rs 21,00,000
Total corpus: Rs 1,91,41,384
Total returns: Rs 1,70,41,384
Investment in annuity plan: 60%
Annuity Rate: 7%
Annuity amount: Rs 1,33,98,968
Monthly pension: 78,161