Can the NPS calculator help you get closer to your retirement dreams?

The National Pension System is one of the most demanding retirement saving options among modern-day individuals. NPS is proven to be an effective tool for achieving financial security and retirement goals. When it comes to understanding how much they can accumulate after retirement and what their estimated pension is. Here, an NPS calculator plays a significant role.

So, what is the NPS calculator, and how can it help you to understand your retirement accumulation? We will discover it in this blog.

What is the NPS Pension Calculator?

The NPS pension calculator in India guides its subscribers to get an estimated retirement and pension income. It helps to calculate the maturity amount and expected monthly pension depending on the subscriber’s contributions. Whether the subscribers are just starting their investment journey or already contributing, the calculator gives a clear projection based on their age, contribution amount, expected rate of return, annuity purchase percentage, and annuity rate at retirement.

How does an NPS Retirement Calculator help?

The NPS retirement calculator is a vital tool for individuals planning their retirement. Here’s how it can help its subscribers:

1. Estimate Future Pension Corpus: The NPS investment calculator helps investors to understand the amount they are likely to receive after retirement. It gives them an almost perfect overview of their accumulated corpus.
2. Clarify Withdrawal Rules: As per existing regulations, an NPS subscriber can only get up to 60% of their accumulated corpus, and the remaining 40% must be used to buy annuities to receive a regular pension. The NPS calculator gives a complete breakdown of these parameters.
3. Ensuring Accuracy: NPS provides market-linked returns. The NPS calculator gives an option to simplify this process. Users can change the estimated interest rate to receive returns in the future. This process provides almost accurate results, eliminating any risk of miscalculation or confusion.
4. Clarity on Taxation: The NPS tool gives clarity on taxation to get the estimated monthly pension payout.

Click here to know how NPS can help you in achieving your retirement goals. 

Benefits of NPS Investment

• Regulated: The NPS pension system is regulated by the PFRDA (Pension Fund Regulatory and Development Authority), which maintains the transparency of the scheme.
• Tax Benefits: Subscribers can get up to ₹1.5 lakh in tax benefits under Income Tax Section 80(C). Additionally, they will also receive ₹50,000 in tax benefits under section 80 CCD (1B). This is over and above Section 80(C).
• Low-cost: NPS is an affordable retirement plan that allows you to open an NPS account with ₹500.
• Portable: Any change in job or location does not affect NPS returns.
• Potential of Returns: NPS invests in equity, corporate bonds, government securities, and AIFs. This gives NPS a good retirement savings option.

Where to Find an NPS Calculator?

There are many websites available in India that can help their subscribers estimate their NPS contributions and returns. Visit https://nps.kfintech.com/ to calculate potential returns.

Final Thoughts

An NPS calculator isn’t just a tool; it’s a financial mirror. It helps its subscribers to stay on track, see the future clearly, and take charge of their retirement planning with confidence. With its benefits, from giving an estimated retirement and pension amount to giving clarity on taxation, it can make a significant contribution to getting close to retirement dreams.