National Pension System (NPS) Calculator
National Pension System (NPS) is a defined contribution scheme. It allows the NPS subscriber to contribute periodically towards their NPS account through their working life. The accumulated funds can be later be used to purchase an annuity. The scheme is specially designed as a sustainable financials solution to provide adequate retirement income to all Indian citizens.
What is an NPS calculator?
The NPS calculator allows you to compute the month payment and lumpsum 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 percentage of accumulated corpus, subscriber wish to use to purchase annuity.
An Annuity is a contract between an individual and an insurance company in which an individual makes a lumpsum payment, in return, receives regular payout. Subscriber need to purchase an annuity of an amount of atleast 40% of corpus at time of retirement. In case of premature withdrawal subscribers needs to purchase annuity of an amount of atleast 80% of corpus.
Subscriber to annuity rate (percentage) rate annuity providers payout to annuitants.
NPS calculator help subscriber to determine the corpus they can build by the time they retire. Based on the subscriber’s decision at the time retirement how much he intend to convert into an annuity (atleast 40%) and what he wants to withdraw. This calculation base on several factor age, amount contribute on monthly basis, the expected rate of return, etc.
