Calculate your monthly pension amount if you are under New Pension Scheme, NPS
Calculate your monthly pension amount if you are under New Pension Scheme (NPS).
Facts/ Assumptions used
- Monthly contribution by the person (10% of Basic + DA): Rs 1000/ month at the start of joining
- Employer's contribution (14%): Rs 1400/ month
- Yearly increment in contribution: 8% (increase in DA + increment), DA: dearness allowance
- No other increment like bonus, benefits from promotion were considered.
- No withdrawal till age 60
- 60% of total accumulated amount at the time of retirement as Provident fund (PF).
- 40% of total accumulated amount shall be invested in annuity plan.
- Return on investment on NPS shall be 9% per year (Average return over period of investment).
- Return on annuity plan shall be 7% per year.
- Inflation rate: 7% per year
- Length of service/ Period of investment: 35 years
- Initial Net asset value (NAV) was taken as 100. It is an arbitrary no. Return does not depend on the initial NAV value. It can be 10, 100 or 1000.
1. Investment
A |
Investment by self |
₹ 1,000.00 |
per month |
|
B |
Investment Employer |
₹ 1,400.00 |
per month |
|
C |
Total investment |
₹ 2,400.00 |
per month |
|
D |
Expected Return % |
9 |
every year |
|
E |
Annual increment in contribution % |
8 |
every year |
|
2. Return
| Total Deposits | ₹ 49,62,724 |
| Total Units | 7862 |
| Latest NAV | 2306 |
| Profits | ₹ 1,31,69,922 |
| Total Amount | ₹ 1,81,32,646 |
| PF at age 60 | ₹ 1,08,79,588 |
| Annuity fund | ₹ 72,53,058 |
| Pension/pm | ₹ 42,310 |
| ROI: 7% pa pension |
|
| Age 60- till death |
3. Inflation adjusted return at the age of 60
(i.e. 35 years from starting investment).
(Inflation: Due to price rise, value of x amount of money after y no. of years, becomes z, where z<x)
PF: Rs 8.58 lakh (vs Rs 1.09 Cr)
Pension/ pm: Rs 3.3k (vs Rs 42k)
- Calculation was done using Microsoft Excel. If you need the excel sheet please request in comment section/ contact us section.
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