- 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 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.
Benefits of NPS
- Extra tax savings: ₹1.5 lakh under 80C + ₹50,000 more under 80CCD(1B).
- Low charges and better returns over time.
- Overall control over how your money is invested and change the fund manager.
- Single account, portable across all job changes.
- Gives you a lump sum and a monthly pension after retirement.
The NPS calculator 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.
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