The financial security of individuals is a necessary indicator of their well-being. People these days are adopting various methods of investing while they are working to ensure their financial security after their retirement. The National Pension Scheme, introduced in 2009 is another low-risk and tax-saving investment option; which is increasingly being opted by people these days. To make things easy there are some online NPS calculator websites that can help in calculating the exact amount on maturity. But before that let’s understand what is NPS.
What is the National Pension Scheme?
The National Pension Scheme (NPS) is a social security scheme. This is an initiative by the Central Government in India, which is a comprehensive scheme that undertakes employees from nearly all sectors. It is open to people employed in the public, private and unorganized sectors, excluding people from the armed forces.
The NPS comes under the scope of the Pension Fund Regulatory and Development Authority (PFRDA) under the auspices of the Central Government in India. It is essentially a voluntary and long-term investment plan designed for retirement.
The scheme invigorates employees to invest in a pension account, throughout their employment after regular intervals of time. The subscribers can access some percentage of the corpus after their retirement, while the remaining amount will be handed to them in the form of a monthly pension, post their retirement.
Initially, the NPS was restricted only to Central Government employees. However, now it is open to all citizens of India (except people employed in the armed forces), although voluntarily. It thus is of immense value to people employed outside the Central Government but desired the lucrative monthly pension post-retirement, which was earlier available only to Central Government employees.
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Best NPS Calculator Websites in 2022
Many online websites offer these NPS calculators, which act as an accessible, hassle-free, one-stop calculation place that gives accurate results; and helps in estimating the amount of corpus at the time of retirement, which can aid in future financial planning. Some of the best online NPS Calculator websites are:
1. Groww
Groww online NPS calculator automates the calculation process of pension and helps people in knowing the corpus amount that they are entitled to by the end of their work-life. An NPS calculator gives an estimate of how much of the total amount will get invested in annuities, how much will get taxed, the taxation regime on pension funds and the amount of monthly pension that the investor will get.
To use the calculator, a user needs to enter the investment amount per month, rate of interest and their current age. You can use the slider to check their expected rate of returns. The calculator can calculate the interest earned, maturity amount and minimum annuity investment.
2. NPS Trust
The NPS Trust is the official body established by the PFRDA to take care of the assets of NPS in the interest of individuals. NPS Trust’s online calculator helps the individuals in estimating the provisional monthly pension and the lump sum amount they can expect upon maturity, based on their contributions and investment strategy.
To calculate these, the calculator demands input on the following:-
- Date of Birth
- Investment Amount
- Expected Returns
- Percentage of purchasing an annuity
- Expected returns on annuity
3. Aditya Birla Capital
Aditya Birla Capital’s online NPS calculator helps in computing the monthly pension and the lump sum amount that they are entitled to at the time of their retirement. The calculation also undertakes factors like expected rate of return, percentage of corpus reserved for purchasing an annuity, and expected returns on the same. It is imperative to note that the results are only indicative of the exact amount.
To use the calculator, the subscriber must enter the details given below:-
- Age (in years)
- The amount they intend to invest under NPS
- Expected rate of return
- Percentage reserved for annuities
- Annuity rate
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4. Cleartax NPS Calculator
The Cleartax online NPS calculator can be and helps the subscribers in determining the provisional details of the amount of corpus. The tool also determines monthly pension they can expect at their retirement based on the portfolio of their investment in NPS and the amount they end up investing.
To use the calculator for obtaining the desired information, one has to enter the following details:-
- Date of Birth
- Investment amount
- Expected returns
- Percentage of corpus for purchasing an annuity
- Expected annuity rate
5. ET Money
ET Money’s online NPS calculator can be used by people who have started investing in NPS or wish to start their investment in NPS. The website has a simple interface, which allows users to calculate the provisional amount of money they’ll have at their retirement. As well as the amount of money they need to save and invest if they have any predetermined retirement goals.
The calculator, thus, can be used in two ways, as follows:-
- To calculate the maturity value
- To calculate monthly investment against the desired corpus value
In order to calculate these, the users have to enter the details related to investment amount, investment strategy, and age in the case of the former; while the goal amount, investment strategy, and age in the case of the latter.
6. Scripbox NPS Calculator
The Scripbox online NPS calculator is a tool that investors of NPS can use to obtain the provisional data about the maturity amount of the investment and the monthly pension they will be entitled to. The calculation is based on the formula of compound interest, on which the NPS works.
The calculator works in a fashion that requires some input in the form of details about their investment type (monthly/ annually), the investment amount, the age of the investor, and the percentage of withdrawal from corpus at retirement. Based on this input, the calculator gives output about the amount invested, the wealth generated, and the monthly pension.
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7. Policy Bazaar
The Policy Bazaar’s online NPS calculator helps individuals who have invested in NPS or wish to invest in NPS in calculating the amount of pension they’ll receive on maturity. The tool also calculates the total amount invested during the accumulation phase and the interest that they have earned.
To use the calculator to estimate the above-mentioned values, one has to enter the following details:-
- Date of Birth
- Amount to be invested
- Expected rate of interest
- Percentage of Annuity
- Expected Annuity Rate
Conclusion
Thus, the NPS is a defined contribution scheme, which allows its subscribers to make periodical contributions to their NPS accounts throughout their employment period. This will lead to the accumulation of funds, which could be used for purchasing annuities or could be taken as cash. Besides, the people will be entitled to a monthly pension. Hence, this is a sustainable financial solution, which aims to provide adequate retirement income to Indians.
The number of investments and returns associated with this scheme can be calculated and estimated using some online NPS calculators. This gives instant results after obtaining some information regarding the age and investment plan of the subscriber.
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