"Calculation of PENSION from NPS"
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Assumption Let your Age be 30 Years. You would like to contribute Rs.5000/- per month to your Tier-I Account of NPS. Total years of contribution is 30. Total investment = Rs.5000/- X 12 X 30. Your expectation on return on investment is 10% on annual basis. You would like to buy annuity with 40% of total corpus at the age of 60 years. Your expectation on annuity rate is 6 %. Calculated Result Based on Assumption Total amount of money invested up to age of 60 years will be Rs.1800000/- (18 Lakh only). Total Corpus generated will be Rs.11396627/- (1.13 Crore only). Total Return or Gain on investment will be Rs. 9596627/- (95.96 Lakh only). Lump Sum value to be withdrawn at maturity = Rs.11396627/- X 60% =Rs.6837976/- (68.37 Lakh only). Annuity Value to be purchased for pension = Rs.11396627/- X 40 % = Rs.4558651/- (45.58 Lakh only). Your expected monthly pension will be Rs.22793/- ( Rupees Twenty Two Thousand Seven Hundred Ninety Three Only).