Federal Bank NPS Calculator

What is the Federal Bank NPS Calculator?

The Federal Bank NPS Calculator is an online calculator that assists investors in calculating and planning their investment under the Federal Bank National Pension Scheme. It takes inputs that include the present age, the retirement age, the amount of contribution, the expected return rate, and the pension distribution to determine the estimated retirement corpus.

The calculator also shows how the amount acquired in the NPS account is split at maturity. For government NPS subscribers, up to 60% of the accumulated corpus may be withdrawn as a tax-free lump sum at maturity, while the remaining 40% must be invested in an annuity plan to provide a regular monthly pension. Withdrawal limits for non-government subscribers are governed by the prevailing NPS exit rules.

How Does the Federal Bank NPS Calculator Work?

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

Let's say an investor is planning retirement through the Federal Bank National Pension Scheme.

The investor starts investing at the age of 33 and plans to retire at 60. A monthly contribution of ₹7,000 is made, with an assumed annual return of 9%.

So,

• Investment Duration: 27 years
  
  
• Total Contribution: ₹7,000 × 12 × 27 = ₹22,68,000

Based on long-term compounding, the Federal Bank NPS Calculator estimates the retirement corpus to be in the range of ₹95 lakh to ₹1 crore.

At retirement, government NPS subscribers may withdraw up to 60% of the corpus as a tax-free lump sum, which is approximately ₹57–60 lakh. While the remaining 40%, around ₹38–40 lakh, is mandatorily 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 ₹21,000.

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 Federal Bank NPS Calculator?

The Federal Bank NPS Calculator also allows investors to estimate their retirement savings and considers the income growth, employer contribution, asset allocation, and expected returns. These include the following steps:

• Enter Age Information: Enter current age and age of retirement.
• Add Income Information: Enter the basic salary for which the contribution is to be calculated.
• Select Contribution Percentage: Choose the contribution to make towards NPS.
• Include Employer and Voluntary Contributions: Add the employer share and any extra self-contribution.
• Set Growth and Asset Allocation: Define salary growth and allocate across asset classes.
• See Instant Results: View the estimated amount you will save at the end of your NPS account in terms of corpus, pension money, and tax savings.

Benefits of Using Federal Bank NPS Calculator

The National Pension Scheme Calculators assist investors in how to plan their retirement by making realistic estimates using practical inputs. The following are some of the key benefits:

• User-Friendly: The calculator requires the user to input information, such as age, contribution amount, and expected returns, hence not too complex even for first-time NPS investors.
  
  
• Instant Projections: It provides immediate estimates of the corpus of retirement and the monthly pension, and thus users can consider the results without any mathematical operations.
  
  
• Adjustable Inputs: Age, level of contribution, and retirement assumptions can be customised to enable users to realise how different circumstances would affect a retirement.
  
  
• Helps to Plan Better: The calculator will help the investors to know how much they will save and what their pension value will be at the time they will retire by showing them the amount they will save currently.
  
  
• Free of charge: The calculator is free and therefore a cost-effective tool for planning.

Tax Implications on NPS Returns

The Federal Bank provides some tax exemptions in the form of an investment in NPS under the Income Tax Act, where an investor may save taxable income as the retirement savings accumulate.

Key Takeaways

The Federal Bank NPS Calculator helps customers calculate the approximate retirement savings, pension, and tax income. Users can adjust contribution amounts, allocation of assets, and returns. This shows how each of the decisions affects the long-term outcomes. It helps in systematic retirement planning and matching of NPS contributions to the future income needs.