How much pension will I get from NPS?

NPS (National Pension Scheme) is started by the Indian government to offer retirement benefits to Indian citizens working. Anyone can opt it irrespective of the sector they are working in. Regulated by PFRDA, this pension scheme allows you to start contributing from the age of 18 till you retire. The deposited amount gets re-invested in corporate bonds, government securities, and equities. As some amount gets deposited in market-linked instruments, you cannot predict the exact returns post-retirement. However, 60% of the accumulated funds can be withdrawn once you retire. The balance of 40% funds will provide you with a fixed pension every month. 

Though it is possible to estimate the NPS returns through a calculator, there can be much difference in the estimated and actual returns. The below-mentioned steps will guide you to calculate the pension with this online tool:

Step 1: Enter your date of birth as the calculator needs to know the years remaining for your retirement. This will help it to calculate the number of years you will contribute towards your NPS account. 

Step 2: Choose the amount that you wish to invest every month. Also, select the rate of return at which you expect your deposits to grow. 

Step 3: Now, select the annuity rate and click on the ‘calculate’ button.

After completing these steps you will get a rough estimate of the accumulated bulk amount and pension amount that you might get after retirement. NPS is a profitable investment scheme especially if you start depositing in it from an early stage of your career. However, the rigid liquidity policies offered by this pension scheme will make you think of other investment options as well. 

For example, you can start investing in FDs to collect enough capital till retirement. FDs like Bajaj Finance FD help you to accelerate your capital at a steady rate. The FD interest rate for senior citizens is up to 6.75% whereas others will get a maximum FD rate of 6.50%. Other than a high rate of interest, this FD scheme offers the following features:

Online investment 

The option of investing online via an online FD form makes it a convenient investment alternative for everyone. This facility is appreciable as you can open an FD account from any part of the world. 

The CKYC process lets you complete the document verification process online. The online payment options of net banking and UPI facilitate easy payment. Moreover, your savings will grow at a 0.10% higher FD rate on selecting the online investment process. 

Periodic returns 

You will also prefer investing in Bajaj Finance FD after retirement. It is because Bajaj Finance FD provides a higher FD interest rate of 0.25% to senior citizens. The non-cumulative FD offers multiple interest payout alternatives that might help you meet your ends post-retirement. These options include monthly, yearly, six-monthly, and quarterly interest payout.

The FD return calculator calculates the monthly payouts or accumulated interest (in case of cumulative FDs) to help you plan your finances accordingly. 

Secure investment 

Bajaj Finance FD provides a safety net for your investments as it keeps them safe from market risks. The high ratings on stability provided by ICRA and CRISIL validate that it is a secure investment alternative for everyone. 

Withdrawing the investment is possible once your deposits finish a minimum lock period of 3 months. The loans offered on Bajaj Finance FD help you to meet finances during a crisis. You can also benefit from the option of investing in multiple fixed deposits at once as it facilitates higher liquidity by allowing you to pick a separate tenor for each FD.