Bank of Maharashtra NPS Calculator

What is the Bank of Maharashtra NPS Calculator?

Bank of Maharashtra NPS Calculator is a web-based calculator that helps investors compute and plan their investment under the Bank of Maharashtra National Pension Scheme. It uses inputs like the current age, retirement age, contribution value, foreseen rate of return, and the estimated amount of pension to project the retirement corpus. The calculator also indicates the distribution of the accumulated NPS amount at maturity.

Government NPS subscribers may take up to 60% of the corpus as a lump sum at the time of superannuation, which is tax-free, and the rest 40% is invested in an annuity to generate a constant monthly income. The amount that non-government subscribers may draw as a lump sum percentage of the corpus is 80%, of which 20% will be required to be invested in the purchase of annuities, subject to the category of subscriber and the current NPS withdrawal conventions.

How Does the Bank of Maharashtra NPS Calculator Work?

The NPS pension calculator uses the compound interest method to estimate retirement wealth accumulated through regular NPS contributions.

Consider a government NPS subscriber who starts investing at the age of 32 and plans to retire at 60. A monthly contribution of ₹7,200 is made, with an assumed annual return of 9%.

So,

• Investment Duration: 28 years
• Total Contribution: ₹7,200 × 12 × 28 = ₹24,19,200

Based on long-term compounding, the calculator estimates the retirement corpus to be in the range of ₹1 crore to ₹1.1 crore.

At retirement, up to 60% of the corpus can be withdrawn as a tax-free lump sum, which is approximately ₹60–66 lakh. The remaining 40%, around ₹40–44 lakh, is invested in an annuity plan.

Depending on prevailing annuity rates and the option selected, this annuity may provide a monthly pension of ₹18,000 to ₹22,000.

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 Bank of Maharashtra NPS Calculator?

NPS Calculator helps investors determine the value of their retirement savings using income growth, employer contributions, asset allocation, and future returns. To use the calculator, one should follow the following steps:

• Enter Age Information: First, you need to enter your current age and the age when you are going to retire.
  
  
• Add Salary Information: Type in your basic salary, which is the salary that is used to calculate NPS contributions.
  
  
• Select Contribution Percentage: Choose what percentage of your income you would wish to put in NPS.
  
  
• Add Employer and Voluntary Contributions: Add the employer contribution, where applicable, and any other voluntary self-contribution.
  
  
• Set Growth and Asset Allocation: Determine the anticipated rate of increase in salary and invest in the various asset classes.
  
  
• See Instant Results: Check the amount of retirement corpus, the amount of your pension and tax savings you will have with your NPS account.

Benefits of Using Bank of Maharashtra NPS Calculator

The national pension scheme calculators assist in retirement planning as they provide realistic estimates at the expense of realistic inputs. The key benefits include:

• User-Friendly: The calculator does not need many complex details, as the user should only input simple information like age, the contribution amount, and projected returns; thus, it is even usable by a first-time NPS investor.
  
  
• Instant Projections: It provides the retirement corpus and the expected monthly pension estimates without requiring the calculations.
  
  
• Adjustable Inputs: The users can put in their age, rate of contributions, and the assumed returns in a manner that they can observe different scenarios with respect to how the retirement is impacted.
  
  
• Helps Enhance Planning: The calculator allows investors to make sure that they are saving the right sums of money in relation to future income requirements, as it shows them the amount of corpus that would become a value on retirement.
  
  
• Free of Charge: This calculator is free and can be accessed online without any charges, and therefore is an effective tool in planning retirement.

Tax Implications on NPS Returns

The Bank of Maharashtra offers tax benefits to investments in NPS as per the Income Tax Act, allowing investors to save taxable income when accumulating retirement funds.

Key Takeaways

Bank of Maharashtra NPS Calculator assists users in estimating their future retirement funds, pension and tax benefits. Users have the ability to change the levels of contributions, asset allocation, and assumptions of returns to view how each choice impacts the long-term results. It facilitates systematic retirement planning and assists in matching NPS contributions with future income needs.