NPS Calculator

Q: What are the minimum and maximum contribution requirements for NPS accounts?

The minimum contribution to open a Tier 1 account is Rs 500 (min. contribution per year is Rs.1000), whereas the minimum contribution to open a Tier 2 account is Rs 250 (no restriction on min. contribution per year). There is no maximum limit on both accounts for contributions.

Q: Can NRIs open an NPS account?

Yes, Non-Resident Indians (NRIs) can open an NPS account as long as they have a valid Pan Card and are between the ages of 18 and 70 years. In addition to this, they must also have Non-Residential External (NRE) or Non- Resident Ordinary (NRO) accounts.

Q: Can I make partial withdrawals from the NPS?

Yes, you can make partial withdrawals from the NPS after ten years of opening the account. However, the withdrawal should not exceed 25% of the total contributions made. This excludes contributions made by the employer. In addition to this, there should be a gap of five years or more between two withdrawals.

Q: Can you exit the NPS before the age of 60?

Yes, you can make a premature exit from NPS before retirement. This can be done only if you have maintained the account for at least ten years. Moreover, you must use at least 80% of the total amount to invest in an annuity plan. However, if the total pension amount is less than Rs 1 lakh, you can withdraw the complete amount directly.

Q: What is the NPS interest rate?

NPS offers market-linked returns which can vary from year to year. The rate of interest has been between 9% and 12% per annum as per past returns.

My current age

Years

I would like to contribute(Per month)

₹

I would like to retire at the age of

Years

My total years of contribution is

Years

My expected return on investment

What you get:

Total Investment
Total Corpus

Total Investment

₹ 25.2 Lakhs

Total Gain

₹ 7.31 Crores

Total Corpus

₹ 7.56 Crores

Calculate your monthly Pension

I would like to purchase annuity for

4080

I am expecting an annuity rate of

4%10%

Annuity value

₹ 3.02 Crores

Lumpsum value

₹ 4.53 Crores

Your expected monthly pension will be

₹ 1,00,765

How to use the NPS calculator?

Here are the steps to use the ICICI Prudential Life NPS Calculator:

Enter your current age
Enter your monthly contribution
Mention your retirement age
Select the rate of return
Mention the percentage you would like to purchase the annuity for
Enter the annuity rate

The NPS calculator will give you your expected monthly pension.

Who can use the NPS calculator?

The NPS calculator can be used by anyone and everyone investing in the scheme. According to the Government of India, Indian citizens between the age of 18 and 60 years from the public, private, and unorganised sectors, except defence forces, can contribute to the NPS. If you are eligible to invest in NPS, you can use the calculator to determine your returns.

How is NPS calculated?

Understanding how your returns are calculated can help you plan your future expenses better and also spot errors in your planning. When you know your future returns, you can ensure their optimal use. You can also create a suitable retirement budget to make sure you do not outlive your savings.

Your NPS returns are calculated using compound interest. So, you can use the following formula to calculate your pension:

A = P (1 + r/n) ^ nt

Ais your final return

Pis the initial principal sum

Ris the interest rate

Nis the number of times the interest is applied or compounded

Tis the tenure

Frequently Asked Questions

Do the pension maturity values vary between Tier 1 & Tier 2 accounts?

The pension maturity value can differ between Tier 1 and Tier 2 accounts as they are taxed differently. The corpus received under Tier 1 accounts are exempt on withdrawal at retirement subject to conditions mentioned under Section 10 of the Income Tax Act, 1961.

However, corpus received on withdrawal under Tier 2 accounts gets added to your taxable income and is taxed per the income tax slab rate as per the Income Tax Act, 1961.

What are the minimum and maximum contribution requirements for NPS accounts?

Can NRIs open an NPS account?

Can I make partial withdrawals from the NPS?

Can you exit the NPS before the age of 60?

What is the NPS interest rate?

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