Know Your NPS Annuity: What should be your investment amount to get Rs 95,000 monthly income in all 5 NPS pension categories?
National Pension System (NPS) Annuity Calculator: NPS is a retirement scheme, where one can invest from ages 18 to 75. At 60 years, NPS account holders get the option to withdraw up to 60 per cent lump and they need to purchase annuity from the rest of the 40 per cent amount.
NPS Monthly Pension Calculation, Retirement Planning: National Pension System is a market-linked retirement scheme, where an NPS account holder can choose equity and debt exposures according to their age and risk appetite. They can increase or decrease their monthly investment, or if they want, they can make lump sum investment at least once in a financial year. Starting investing in NPS early has its own advantage as it provides years of compounding compared to those who start later. At 60 years of age, NPS account holders get the option to withdraw up to 60 per cent lump from their accumulated retirement corpus, but they need to purchase annuity from the rest of the 40 per cent amount. The return from annuity provides monthly pension. In this write-up, know what should be your minimum annuity investment to get at least Rs 95,000 monthly pension in all 5 NPS categories.
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NPS: Types of pensions
NPS offers 5 types of monthly 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
For our projection, we are taking the example of a 60-year-old private sector employee with his spouse age as 58 years. The source of our calculation is the NSDL's official website.
Minimum NPS annuity amount to get Rs 95,000 monthly pension
As per the NPS pension service provider's list available on NSDL's website, the minimum annuity investment to get Rs 95,000 monthly pension in all 5 NPS categories is Rs 1,62,00,000.
Monthly pension in annuity for life with ROP
In this NPS pension category, annuity ceases on the annuitant's death and the purchase price (ROP) is returned to the nominee.
Monthly pension in annuity for life with ROP
On a Rs 1,62,000,00 (Rs 1.62 crore) investment in annuity, the best available NPS pension under this category is Rs 95,674.29. The lowest pension amount is Rs 78,045.
Monthly pension in annuity for life without ROP pension
In this category, the annuity payment ceases on the annuitant's death and the purchase amount is not returned to the nominee.
Monthly pension in annuity for life without ROP pension
On a Rs 1,62,000,00 annuity investment is this category, the best available NPS pension as Rs 1,25,439.00, while the lowest pension is Rs 1,00,435.
Monthly pension in joint life annuity with ROP
In this NPS pension category, annuity 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
If an NPS account holders invests Rs 1,62,000,00, the highest available NPS monthly pension is Rs 95,210.00, while the least is Rs 76,118.
Monthly pension in joint life annuity without ROP
Under this category, on the death of the annuitant, the annuity amount is paid to the spouse during their lifetime. If the spouse predeceases the annuitant, annuity will cease after the death of the annuitant.
Monthly pension in joint life annuity without ROP
The highest NPS monthly pension available under this category is Rs 1,10,826.00, while the lowest is Rs 87,482.
Monthly pension in family income with ROP
Here, on the annuitant's death, the spouse gets monthly pension for lifetime. After the spouse's death, the annuity goes to the living dependent mother and father of the deceased annuitant.
After all these family members are covered, annuity ceases, and the full payment is returned to the surviving children or legal heirs of the annuitant.
Monthly pension in family income with ROP
Under this category, the highest available pension is Rs 95,210.00, while the lowest is Rs 76,118.
Monthly NPS pension on Rs 1.62 cr annuity purchase
| (With ROP) ₹ | (With ROP) ₹ | (With ROP) ₹ | (Without ROP) ₹ | (Without ROP) ₹ | |
| TATA AIA Insurance Co. Ltd | |||||
| Edelweiss Tokio Life Insurance Co. Ltd | |||||
| ICICI Prudential Life Insurance Co. Ltd | |||||
| Bajaj Allianz Life Insurance Co. Ltd | |||||
| Canara HSBC Life Insurance Co. Ltd. | |||||
| PNB Metlife India Insurance Co. Ltd | |||||
| Star Union Dai-ichi Life Insurance Co. Ltd | |||||
| SBI Life Insurance Co. Ltd | |||||
| Kotak Mahindra Life Insurance Co. Ltd | |||||
| Life Insurance Corporation of India | |||||
| HDFC Life Insurance Co. Ltd | |||||
| Aditya Birla Sun Life Insurance Co. Ltd | |||||
| IndiaFirst Life Insurance Co. Ltd | |||||
| MAX Life Insurance Co. Ltd | |||||
| Shriram Life Insurance Co. Ltd. |
Chart Source: NSDL