New National Pension System (NPS) calculator: Save Rs 100/day to get up to Rs 57,000 per month
National Pension System (NPS) calculator news: While most of the benefits of the National Pension System are widely known, investors often wonder how much monthly pension they can generate by investing in this scheme. The National Pension System (NPS) Trust has now made it easy to calculate the tentative pension and Lump Sum amount an NPS subscriber can expect on retirement.
The NPS Trust has launched a revamped website, which has made understanding the returns and benefits of the NPS much easier for investors. The website has also made it easy to invest to support your post-retirement life.
NPS subscribers or individuals who want to take benefit of this scheme can check tentative returns they can expect by using the NPS calculator available on the revamped website. For the benefit of readers, we used this calculator to see how much pension one can get by investing very small amounts in this scheme from a young age. Let’s have a look.
The NPS rules allow subscribers to invest till age 75. However, if someone invests just Rs 1500 per month (which is equal to saving just Rs 50 per day) from age 25 to age 60, s/he would retire with a total corpus of approx Rs 57,42,416 if the annual rate of return is 10%.
At the time of exit from the scheme, investors have the option to buy an annuity plan with up to 100% of the corpus. If this subscriber buys an annuity plan with 100% of his/her corpus, s/he will be able to get a monthly pension of Rs 28,712, the calculator shows ( see image below)
In case this subscriber purchases an annuity with just 40% of the corpus, the monthly pension may be approx Rs 11,485 while the lump sum amount that can be withdrawn would be approx Rs 34 lakh.
Also Read: A new way to withdraw money from NPS
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