Andhra Bank NPS Calculator

What is the Andhra Bank NPS Calculator?

Andhra Bank NPS Calculator is a web-based tool. It estimates retirement corpus by taking into account age, retirement age, amount of contributions, projected returns, and annuity allocation based on Andhra Bank National Pension Scheme. Government subscribers may take up to 60% of the corpus tax-free and invest the remaining 40% in an annuity to produce a monthly pension, and non-government subscribers may take up to 80% as a lump sum with only 20% in an annuity on maturity.

How Does the Andhra Bank NPS Calculator Work?

The Andhra Bank NPS Calculator uses the compound interest approach to estimate long-term wealth creation through systematic NPS contributions.

For example, if an investor contributes ₹8,000 per month for 30 years, the total contribution amounts to ₹28,80,000. Assuming long-term compounding, the calculator estimates a retirement corpus of approximately ₹1.3 to ₹1.4 crore.

At retirement, a government NPS subscriber can withdraw up to 60% of this corpus as a tax-free lump sum, which works out to around ₹78–₹84 lakh. The remaining 40%, roughly ₹52–₹56 lakh, is required to be invested in an annuity.

Based on prevailing annuity rates and the annuity option selected at retirement, this annuity amount may generate an indicative monthly pension of around ₹10,000 to ₹15,000.

NPS Calculator

Your Age

Years

18 Years 59 Years

Enter Your Age

Monthly Investment

₹

₹500 ₹10L

Enter Investment Per Month

Expected Return on Investment

%

5% 15%

Expected Return on Investment

Percentage of Corpus Allocated for Pension

%

40% 100%

Enter Corpus Percentage

Expected Return from Pension

%

5% 15%

Enter Annuity Return

₹0

Your Monthly Pension

View Plans

₹0

Your Monthly Pension

View Plans Your Pension Calculation

Your Pension Calculation

Total Investment

Returns Earned

Maturity Amount

Maturity Amount split (Lumpsum & Pension)

60%

Lumpsum Amount

At the age of 60 Yrs

40%

Pension Wealth

At the age of 60 Yrs

View Plans

How to Use the Andhra Bank NPS Calculator?

The NPS calculator is used by subscribers to determine the results of retirement by modifying major financial assumptions. The steps typically include:

• Enter Age: Enter the present age and future retirement age.
  
  
• Add Contribution Information: Enter monthly or annual NPS contribution
  
  
• Type of Contribution: Select individual, employer or voluntary contributions.
  
  
• Set Return Assumptions: Expected rate of return and investment allocation.
  
  
• See Results: See the estimated retirement corpus, the amount of lump sum and the monthly pension immediately.

Benefits of Using the Andhra Bank NPS Calculator

There are several advantages of the calculator to those who are planning to retire with the help of NPS:

• Simple to use: It merely requires the simple inputs such as the age, amount of contribution and projected returns.
  
  
• Instant Projections: Provides the estimate of corpus and pension immediately without making computations manually.
  
  
• Adjustable Inputs: This will allow the user to adjust assumptions to compute different retirement possibilities.
  
  
• Helps Financial Planning: Helps to match the current savings and future needs in terms of income.
  
  
• Free of cost: It is available on the Internet free of charge.

Tax Implications on NPS Returns

Investments made under the National Pension Scheme are eligible for tax benefits as per the Income Tax Act, offering subscribers the opportunity to maximise tax savings and accumulate a retirement fund.

Key Takeaways

Andhra Bank NPS Calculator assists subscribers of the National Pension Scheme in estimating their retirement corpus, monthly pension and tax benefits. The minimum contribution under NPS is ₹500 per contribution, and the minimum contribution in the case of a Tier I account is ₹1,000 per annum. By adjusting the amount that investors contribute, assumptions about returns and retirement plans, investors are able to test different scenarios. This will help them visualise how these decisions will affect their future retirement.