Can the NPS calculator benefit you? Explained!

You must have used any kind of calculator to analyze your savings. What about your retirement? Here the NPS calculator comes into the picture to calculate your accumulated corpus after your retirement. It gives you an idea of how much you need to invest monthly to receive a certain amount you are looking for after retirement. In this blog, we’ll explain the benefits of the NPS calculator and how to use it.

What is the National Pension System?

The National Pension System also known as the National Pension Scheme, was introduced by the government of India for those individuals who were looking to create a corpus for their golden years. Any Indian resident between the ages of 18 to 70 years can invest in NPS. It offers market-linked returns and has the potential to provide higher returns in comparison to conventional investment options. NPS also provides various tax benefits.  

How does the NPS calculator benefit you?

The NPS pension calculator can help you in many ways. Here are a few of them:

1. It helps you to determine the final corpus after you retire.
2. Upon retirement you are entitled to get 60% of your accumulated corpus which is exempt from tax and the remaining 40% must be invested in annuities to receive pension. NPS calculator shows both amounts to give you an idea of how much of your money will be exempted from tax.
3. Manual calculation is a difficult task to do.  NPS pension calculator will automate every task and help you to make better decisions.
4. It shows how much amount you need to invest monthly to receive the desired amount after retirement.

Step to calculate returns through the NPS calculator

You can follow the simple steps to use the NPS pension calculator

• Step 1 – First, insert the amount you want to invest per month. The more you invest today the more you allow yourself to accumulate more corpus.
• Step 2 – Now, you can enter your current age.
• Step 3 – After that, enter the expected rate of return. And the results will be soon displayed.

Looking to analyze your future savings? Use the NPS calculator by clicking here. 

Things to avoid using the NPS calculator

1.  Avoid entering unrealistic investments. It is good that you are looking to invest but don’t put in unrealistic amounts, add an amount according to your budget.
2. Don’t exceed the rate of returns. The rate of return may vary from time to time, don’t put a low or higher expected rate of return.
3. Use a calculator from an authentic website or app. There can be many calculators that may lead you to some unauthorized websites.

Conclusion

Using an NPS calculator is not a difficult task, you just need to put numbers according to your budget and investment goals. Try using an NPS calculator that is from the authentic website or PoP. The NPS calculator shows the expected accumulated corpus that can be a motivational step to start your NPS journey.