NPS Calculator - All You Need To Know!
Table of Contents
The NPS calculator allows you to compute the month payment and lump sum amount they can expect after retirement. The calculation is based on monthly contribution made, the annual expected rate of return on investment, percentage of corpus for which annuity is purchased and expected percentage return on annuity. This illustration is only indicative.
How to Use calculator?
Subscriber must enter the following details
- Enter the age in years
- Subscribers must enter the amount they would like to contribute every month towards their NPS account.
- Subscriber must enter the expected rate of return on their contribution.
- This is the percentage of accumulated corpus, subscriber wish to use to purchase annuity.
- Subscriber to annuity rate (percentage) rate annuity providers payout to annuitants.
Who Can Use The NPS Calculator?
The NPS calculator can be used by all individuals who are eligible to invest in the National Pension Scheme.
Eligibility criteria: The NPS rules state that all Indian citizens over the age of 18 years but not more than 60 years are eligible to invest in the pension scheme. Also, applicants will be required to comply with the Know-Your-Customer (KYC) guidelines to start investing in the NPS scheme.
Advantages of Using the NPS Calculator
The main advantages of using the NPS calculator are mentioned below:
- Results are accurate when compared to manual calculations.
- Future planning is possible since you will know the pension amount.
- Saves time.
- One-stop website to calculate the NPS amount.
Conclusion
NPS calculators help subscribers to determine the corpus they can build by the time they retire. Based on the subscriber’s decision at the time of retirement , how much he intends to convert into an annuity (at least 40%) and what he wants to withdraw. This calculation is based on several factors: age, amount contributed on a monthly basis, the expected rate of return, etc.
Also read- Importance And Benefits Of Life Insurance
