- Subscriber: Mr. A, age 21, Central Government employee
- Monthly Contribution: ₹3,600
- Investment Duration: 39 years (until age 60)
- Expected Annual ROI (during accumulation): 8%
- Annuity Purchase at Retirement: 40% of corpus
- Expected Annuity Return: 6%
Total Contribution Over 39 Years:
₹3,600 × 12 months × 39 years = ₹16,41,600
Projected Corpus at Retirement:
Based on an 8% annual return, the corpus at age 60 is projected to be ₹1,07,06,420
Lump Sum Withdrawal (60% of corpus):
60% of ₹1,07,06,420 = ₹64,23,852 (tax-free)
Annuity Purchase (40% of corpus):
40% of ₹1,07,06,420 = ₹42,82,568
Estimated Monthly Pension (based on 6% annuity return):
Monthly Pension = ₹21,413
How to Use the NPS Calculator?
The calculator needs the following information to determine how much corpus you will accumulate:
- Enter your monthly investment amount
- Add your current age
- Add your expected return on investment
- Enter the percentage of annuity purchase
- Add expected return of annuity.
Eligibility Criteria For NPS
The NPS calculator can be used by anyone eligible to invest in the National Pension System. As per NPS guidelines, any Indian citizen between the ages of 18 and 60 can open an NPS account, provided they comply with the Know Your Customer (KYC) norms. This includes submitting valid identity and address proof as part of the registration process.
The NPS calculator is a valuable tool for anyone planning their retirement through the National Pension System. It offers a clear estimate of your future retirement corpus, potential tax savings, and monthly pension based on your inputs. While the results are indicative, they help in making informed decisions about long-term savings and financial security. Start using the NPS calculator today to map out a retirement strategy that aligns with your goals and ensures peace of mind in your golden years.
