National Pension System (NPS) Calculation News: Although most of the benefits of the National Pension Plan are widely known, investors often wonder how much pension they can generate each month by investing in this plan. The National Pension Plan (NPS) Trust has made it easy for NPS participants to calculate the amount of transitional pension and lump sum they can expect upon retirement.
NPS Trust has launched a revamped website to make it easier for investors to understand the benefits and benefits of NPS. The website also makes it easy to make investments to support your retirement.
NPS participants or individuals wishing to take advantage of this scheme can use the NPS Calculator available on the redesigned website to determine preliminary earnings potential. For the convenience of our readers, we used this calculator to see how much pension you could receive if you invested a very small amount in this plan from a young age. Let’s see.
Invest 1500 rupees monthly from age 25
NPS rules allow participants to invest up to the age of 75. However, if one invests only 1,500 rupees per month from age 25 to 60 (which equates to saving only 50 rupees per day), with an annual rate of return of 10%, the person will retire with a total net worth of approximately 57,42,416 rupees.
Upon leaving the scheme, investors have the option to purchase an annuity plan with up to 100% of the corpus. If this participant purchases a pension plan with her 100% of her property, she will receive an annuity of Rs 28,712 per month according to the calculator (see image below).
If this participant bought an annuity with only 40% of the corpus, the monthly annuity would be around Rs 11,485 and the lump sum withdrawable would be around Rs 34 million.
Also read: A New Way to Withdraw Money from Your NPS Account: Systematic Mass Withdrawals (SLW) Explained
3000 rupees monthly investment from age 25
According to the NPS calculator, if someone invests only 3,000 rupees each month from age 25 to 60 (which equates to saving only 100 rupees per day), he or she will retire with approximately 1,1484,831 rupees in total assets if the annual rate of return is 10%. Upon exiting the scheme, if this investor purchases a pension plan with up to 100% of the corpus, according to the calculator, he will receive an annuity of Rs 57,412 per month (see image below).
If this participant bought an annuity with only 40% of the corpus, the monthly annuity would be around Rs 22,970 and the lump sum withdrawable would be around Rs 68 million.
Is 10% annual revenue possible from NPS?
Expected annual returns from this plan may be less than or greater than 10%. Because the Plan provides market-linked returns, the actual amount that Pension Corpus members can contribute to retirement age may vary. Returns also depend on the NPS and the fund manager’s choice of investment scheme.
Over the past decade, the average NPS return in the equities category has been over 13%. According to data from the NPS Trust website, the average return for other scheme categories also over the 10-year period he was above 9% (see image below).
The calculator shows that if the participant mentioned in the example above can earn a return of 13% until retirement age, he could earn Rs 63,924 per month by investing Rs 1,500 per month from age 25 to 60, and Rs 1,27,848 per month by investing Rs 3,000 per month during this period.
NPS participants can use this calculator to get an estimate of their expected pension and retirement corpus by entering values such as date of birth, monthly contributions, total years of contributions, and expected return on investment.
Disclaimer: The above content is for informational purposes only. NPS is a great plan for retirement planning, but investors should ideally consult a financial advisor before investing.
