NPS Pension Calculator: National Pension System (NPS) is a better scheme to get a fixed amount of pension regularly in your old age. NPS is such an investment scheme under which you contribute regularly as long as you work somewhere. After this, on attaining the age of 60 years, a maximum of 60 percent of the accumulated amount can be withdrawn and regular pension can be obtained from the remaining amount. It depends on the contribution made under the scheme, so it is better to use a calculator. This will give you an idea of how much contribution should be made towards pension of Rs 1 lakh or more.
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Make Retirement Plan Through NPS Calculator
Before opening an NPS account, make sure you know the amount you have to contribute. For this you can use the NPS calculator given on the website of NPS Trust. Apart from the pension amount, the NPS calculator gives an estimate of the lumpsum amount at the time of retirement. Keep in mind here that if you do not withdraw the lump sum amount at the time of retirement and buy an annuity plan with the full amount under which pension is available, then you can ensure more pension even with less contribution.
While using the NPS calculator, details of age, retirement age (it automatically shows 60 years), monthly contribution, estimated growth rate (keep it at 5-15 per cent) are to be filled. Apart from this, how much amount will be withdrawn at the time of maturity, by changing it from 40 percent to 0 percent tax, you can see how much the pension amount will be made. Estimated annuity rate can be assumed at 6 percent.
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understand by example
If a person has started contributions from the age of 30, the NPS maturity age i.e. retirement age is 60 years, the estimated growth rate is 10 percent and the estimated annuity rate is 60 percent, then at the age of 60, if no lump sum amount is withdrawn If you want, you can ensure a pension of 1 lakh rupees only on the contribution of 9 thousand rupees every month. On the contrary, if 40 percent of the amount is withdrawn in lump sum from the NPS account at the time of retirement, then a pension of Rs 22 thousand will be available every month through the annuity purchased from the remaining amount.
(Article: Sunil Dhawan)