Life Insurance Corporation of India (LIC) is one of the oldest insurance institutions in the country and hence is one of the most reliable and trusted organizations. Over the years, LIC has come up with many policies and schemes for their customers so that they can have a better and brighter financial future. The Government of India along with many banks and financial organizations, come up with plans and policies for their citizens so that they can have a decent financial corpus even after their retirement.Read more
Peaceful Post-Retirement Life
Tax Free Regular Income
Wealth Generation to beat Inflation
Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000
Get the best returns & make the most of your Golden years
Expected Return on Investment
Percentage of Corpus Allocated for Pension
Expected Return from Pension
National Pension System or National Pension Scheme is one such plan launched by the Government for Indian Residents.
Let us understand in detail about the LIC National Pension System focusing on LIC NPS Calculator, its features, benefits, and more.
The Government of India along with the PFRDA (Pension Fund Regulatory and Development Authority) comes up with many policies for their citizens from time to time. NPS or National Pension Scheme offers great returns to the Indian Citizens after retirement and this government-backed scheme is offered by various banks and financial institutions to their customers.
Any Indian Resident from the age of 18 years to 60 years can opt for the National Pension Scheme and with the help of this scheme create a fruitful financial corpus for themselves after retirement.
National Pension Scheme Calculator is a financial tool that helps in the calculation of the amount the account holder is entitled to receive at the age of retirement based on the regular contributions made for the complete tenure of the scheme.
All banks and financial institutions offering the National Pension Scheme have their own NPS Calculator for the customers wherein they can keep track of their NPS contributions made and the amount receivable at the end of the tenure easily. This hassle-free and easy-to-use financial tool is extremely convenient and calculates the lump sum amount receivable by the account holder just by putting in a few basic details related to the National Pension Scheme.
Following details will be required by the LIC NPS Calculator to compute the lump sum amount receivable at the end of the policy tenure:
The present age of the LIC NPS account holder
Amount to be invested every month in the LIC National Pension Scheme
Expected Return on Investment (ROI)
Annuity purchase percentage
Expected rate of annuity
LIC NPS Calculator can be beneficial to their customers in the following ways:
It helps in the computation of the lump sum amount the investor is entitled to receive at the time of retirement. Contributions made under the National Pension Scheme are considered investments and not a liability.
The entire corpus cannot be withdrawn altogether in one go after the retirement age.
40% of the total amount should be invested in annuities
60% of the remaining amount is subjected to taxation
Calculations done on LIC NPS Calculator are more accurate and quick compared to manual calculations any day
The lump sum amount to be received post-retirement is calculated in a blink of an eye without any difficult formulas
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A compound interest formula is used for the computation of the LIC NPS amount which is to be received post-retirement. The compounded formula helps in computing the amount automatically when details are put on the NPS Calculator. On the other hand, the compounded formula can also be used manually to calculate returns.
The LIC NPS Calculation formula is:
FV = P (1 + r / n) ^ nt
FV = Final Value
P = Principal Sum
r = Rate of interest per annum
n = Total number of times the interest compounds
t = Tenure
Mr. Yadav, a LIC NPS account holder contributes Rs. 3,000 every month in his account. considering his age, it is understood that he will have to make the contributions under the LIC NPS account for 26 more years to receive the interest amount. Assuming that the current ROI (Rate of Interest) is 10% (which will remain constant throughout the tenure), the National Pension Scheme amount receivable at the end will be:
Considering the contributions made, the Principle amount invested in the remaining 26 years will be Rs. 9.36 lakhs (approximately)
The maturity amount to be received at the end of the LIC National Pension Scheme will be Rs. 44.35 lakhs (approximately)
The following process needs to be followed to make investments in the LIC NPS Account by the account holders:
Visit the official website of LIC (Life Insurance Corporation of India)
Follow the guidelines for the registration process
Choose the suitable option for registration
Enter all the required details like,
Email ID, etc
Fill in the OTP (One Time Password) sent on your registered mobile number
Select the type of investment account as per your suitability
Select the investment strategy whether Auto or Active choice
Enter the nominee details
Once the registration process is complete, now you can access the LIC NPS Account
PRAN (Permanent Retirement Account Number) is generated after the registration process is completed
Following are the advantages of using the LIC NPS Calculator:
Easy online calculations
More accuracy than manual calculations
The lump sum pension amount will help plan the future in a better way
NPS or National Pension Scheme is an extremely beneficial government-backed scheme that helps in creating a fixed financial corpus for the scheme holders even after retirement. The purpose of NPS is to offer every individual a decent corpus even at the age where they can no more earn money for themselves or support their families financially.
*All savings are provided by the insurer as per the IRDAI approved insurance
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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