NPS Return Calculator: How Can You Get Rs 50K Monthly Return? Check Return Calculator

27/06/2024

nps return calculator: how can you get rs 50k monthly return? check return calculator

Retirement planning is often overlooked, even though effective financial products are available. In India, numerous investment products are available for decent returns. But, the selection of the right one is the go-to method for many.

One such tool is the National Pension System (NPS). This is a well-known avenue backed by the Pension Fund Regulatory and Development Authority (PFRDA).

However, there is a certain amount people want to get post-retirement to beat inflation as regular savings failed to do so. In this article, we are decoding how one can get a monthly figure of Rs 50,000 pension per month from NPS investment.

What Is NPS?

Before going to the return calculator, first, get a look at what is NPS and what are its benefits. NPS is a market-linked, defined-contribution investment scheme available to all citizens aged 18 to 70.

NPS allows individuals to invest systematically in a market-linked plan to secure a stable pension for their retirement years. It enables individuals to work towards a monthly pension under its voluntary model.

How To Get Rs 50,000 Monthly Return From NPS?

Here below you can get all the details regarding how much you need to invest in NPS, and at what age to achieve a pension of Rs 50,000 per month.

How To Get Rs 50,000 Per Month Pension From NPS: Return Calculator

If you want a low investment per month, start investing at an early age. Suppose, you are 25 years old right now, and the retirement age is 60 years.

Here's the breakdown:

- Investment starts when you are 25 years old.

- Retirement age: 60 years

- Investment time frame: 35 years

- Expected Return: 10 per cent per annum

- Monthly contribution: Rs 6,550

Return Calculator Breakdown:

- Total amount you invested: Rs 2,50,75,245

- The amount you can withdraw at retirement: 60 per cent of total amount i.e. 60 per cent of Rs 2,50,75,245 = Rs 1,50,45,147

- Now, the amount invested in annuity: Rs 1,00,30,098

- Expected monthly return: Rs 50,150

How Much Monthly Return Can You Get From NPS?

The pension amount a subscriber receives from NPS depends on the size of contributions, investment returns, and the amount used to buy an annuity upon maturity.

Linked To Market Conditions

Since NPS investments are linked to market conditions, the scheme does not guarantee any specific benefits.