NPS Pension Calculator :The government pension scheme National Pension System (NPS) is a very useful scheme for retirement. If you invest in it for a long time with the right strategy, then your tension about money after retirement will end. The good thing is that no matter how much amount you start this scheme with, it has a facility like SIP top up, through which you can increase the investment amount by a fixed percentage every year. That is, as your income increases, you can give a booster of top up to your National Pension Scheme. If you start investing at the age of 25 and keep doing a top up of 10 percent every year, then your pension can increase 3 times on retirement.
SIP Return: Top 6 schemes of Axis Mutual Fund, 30 to 40% annual return in 3 years, 6 lakhs earned from 36 SIPs of 10 thousand
Understand from 2 case studies
You can understand it like this, suppose in the first case you opened an account in the National Pension Scheme at the age of 25. In the first year, you started by investing Rs 5000 every month. Every year you planned to increase it by 10 percent. You did this till the age of 60.
In the second case also, you opened an account in the National Pension Scheme at the age of 25. In the first year, you started by investing Rs 5000 every month. However, you did not increase this amount every year. Your plan is to invest Rs 5000 every month for 60 years. In both cases, there will be a big difference in retirement fund and pension. This can be understood by calculation.
Mutual Fund Star: Tata Group’s scheme made Rs 3000 SIP into Rs 3 crore, one time investment increased 37 times
Case 1 – NPS : Calculation with Top Up
Age to start investing: 25 years
Investment period: 35 years (till age 60)
Investment in NPS every month: Rs 5,000
Top up investment every year: 10%
Your total investment in 35 years: Rs 1,62,61,462
Estimated return on investment: 8% p.a.
Total Corpus: Rs 4,35,31,816 (Rs 4.35 crore)
Total profit: Rs 2,72,70,354 (Rs 2.73 crore)
Total tax saving: Rs 48,78,439
Investment in annuity plans: 60%
Annuity Rate: 7%
Pension Wealth: Rs 2,61,19,090 (around Rs 2.61 crore)
Lump sum withdrawal amount: Rs 1,74,12,726 (Rs 1.74 crore)
Monthly pension: Rs 1,52,361 (about Rs 1.52 lakh)
By investing with this strategy, you will get a lump sum fund of Rs 1.74 crore when you retire at the age of 60. At the same time, you will start getting a pension of about Rs 1.52 lakh every month.
(Source: SBI Pension Fund Calculator)
SIP Losers: SIP is not a guarantee of profit, these 5 mutual funds are continuously making losses, somewhere money is lost and somewhere returns are less than FD
Case 2 – NPS : Calculation without top up
Age to start investing: 25 years
Investment period: 35 years (till age 60)
Investment in NPS every month: Rs 5,000
Your total investment in 35 years: Rs 21,00,000
Total Corpus: Rs 1,15,45,938 (Rs 1.15 crore)
Total profit: Rs 94,45,938 (Rs 94.46 lakh)
Total tax saving: Rs 6,30,000
Investment in annuity plans: 60%
Annuity Rate: 7%
Pension Wealth: Rs 69,27,563 (around Rs 69 lakh)
Lump sum withdrawal amount: Rs 46,18,375 (Rs 46.18 lakh)
Monthly Pension: 40,411 (about 40 thousand rupees)
By investing with this strategy, you will get a lump sum fund of about Rs 46 lakh when you retire at the age of 60. At the same time, you will get a pension of about 40 thousand rupees every month.
(Source: SBI Pension Fund Calculator)
SIP Return: 21 years old 3 mutual fund schemes, annualized return up to 18%, value of 10 thousand SIPs increased to 1.5 to 2 crores
NPS: What is this government pension scheme
National Pension System is an investment scheme. This scheme is designed for pension after retirement. It is being regulated by PFRDA or Pension Fund Regulatory and Development Authority under PFRDA Act 2013. Under NPS, investors’ savings are deposited in the pension fund. Any Indian citizen (government employee or private sector employee) between the age of 18 to 70 years can open an account in NPS. After opening the account, one has to contribute till the age of 60 or till maturity. At least 20 years of investment is necessary in this.
