"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  • Lump Sum value to be withdrawn at maturity = Rs.11396627/- X 60% =Rs.6837976/- (68.37 Lakh only).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).

The calculations and illustrations shown above are based on assumptions and speculations and not on actual basis. 

 Happy Investing !!! 





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Comments

  1. Unknown28 March 2018 at 10:46

    Good analysis.

    ReplyDelete
  2. Avijit30 May 2018 at 11:28

    Hey Pradip sometime i wonder why don't you not become a investment analyst .your vast knowledge in investment feel me jealous because be a mechanical engineer how do you acquired knowledge in different field like investment,homeopathy,Feng Sui and your own field mechanical engineering.
    Though i dont know your other hidden talent.sometime i think about investment but my professional uncertainty become a barrier.present volatile market is right time to invest because increase crude oil price and trade deficit hence rupee devaluation.i dont think so but another aspect is our economy will be become 5 trillion in 2025 so it will be the right time for investment.please tell me what is your opinion?

    ReplyDelete
  3. PRADIP31 May 2018 at 08:08

    Thanks for your appreciation. You can invest in this bearish market, which will be fruitful in future. But I will suggest you to invest in a disciplined and systematic manner for a long time. SIP is the best option because it is not about timing the market, it is actually the time you are invested in the market. Happy investing !

    ReplyDelete
  4. Unknown24 October 2018 at 22:29

    The Previous generation got the pension but present generation will not get a pension so fianncial planning is important for our youth. you can use Systematic Investment Plan (SIP).Investment Service in Patna suggest you that before investing your fund you look at your financial status, fix your investment target, understand plans which is best for you.

    ReplyDelete

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