NPS Calculator: National Pension System (NPS) is a great option to build a retirement corpus. One of the most preferred retirement plan options, NPS is a government-backed scheme that allows individuals to contribute to the pension account regularly while earning.
After their NPS account matures, account holders can withdraw a lump sum amount from the corpus and later invest the remaining amount to buy an annuity for a fixed monthly pension.
Activate and auto-choice options
NPS offers four asset classes – equities, corporate debt, government bonds and alternative investment funds. An investor has two options to invest in NPS – Active and Auto Choice.
How to get Rs 75,000 monthly pension after retirement?
Who does not want a good amount every month in his bank account. So, if you want to get more than Rs 75,000 as pension per month from your NPS investment, here is how much you need to contribute. know about this.
For this, the total accumulated NPS corpus at maturity should be Rs 3.83 crore (ie at the age of 60 years). Here, we are assuming that we use only the mandatory 40 per cent NPS corpus to purchase annuity. The annuity rate is assumed at 6 percent interest per annum.
For example, a 25 year old person is investing Rs 10,000 monthly in NPS for the next 35 years (i.e. till the age of 60 years). Assuming 10% annualized return, the total NPS investment at maturity will increase to Rs 3,82,82,768. If they use 40 per cent of the total corpus to buy an annuity, they will get a pension of Rs 76,566 per month after retirement.
