Indian Overseas Bank NPS Calculator

What is the Indian Overseas Bank NPS Calculator?

Indian Overseas Bank NPS Calculator is a NPS calculator used to calculate the retirement benefits of the NPS of the individual customer. At superannuation, government NPS subscribers can withdraw up to 60% of the corpus as a tax-free lump sum, with 40% invested in an annuity for a monthly pension. Non-government subscribers can withdraw up to 80% as a lump sum, with only 20% required for annuity purchase. Depending on the amount of contribution, years of investment and the rate of return, the calculator estimates the amount of the retirement corpus and pension that are likely to be received.

How Does the Indian Overseas Bank NPS Calculator Work?

The Indian Overseas Bank NPS Calculator is based on the concept of compound growth to calculate retirement savings in the long run. It estimates the growth of the regular contributions with time, on the basis of an assumed growth rate and the entire investment period.

The calculator applies the standard compound interest formula:

Take an example of an investor who wishes to retire using the National Pension System (NPS).

The investor begins investing at the age of 36 and plans to retire at 60 as a non-government NPS subscriber, contributing ₹7,000 per month with an assumed annual return of 8%.

So,

• Investment Duration: 24 years
• Total Contribution: ₹7,000 × 12 × 24 = ₹20,16,000

Using the long-term compounding, the retirement corpus can be approximately ₹65 lakh to ₹70 lakh.

At superannuation, the subscriber can withdraw up to 80% of the accumulated corpus as a lump sum, which works out to approximately ₹52–₹56 lakh. The remaining 20%, around ₹13–₹14 lakh, is mandatorily invested in an annuity to provide a regular pension.

Depending on prevailing annuity rates and the option selected at retirement, this annuity may generate a monthly pension of around ₹6,000 to ₹8,000.

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 Indian Overseas Bank NPS Calculator?

In order to determine your future retirement corpus and pension benefits using the Indian Overseas Bank NPS Calculator, follow the following steps:

• Step 1: Enter Your Current Age: Select your age in order to set the starting point of investment.
• Step 2: Choose Your Retirement Age: Select your retirement age to calculate how much time you are going to invest.
• Step 3: Add Your NPS Contribution Amount: Enter the contribution amount per month or the annual contribution amount.
• Step 4: Select the Expected Rate of Return: Choose a presumed rate of return of the long-term performance of the NPS.
• Step 5: Set the Annuity Allocation Percentage: Choose what percentage of the corpus will be allocated in the purchase of the annuities.
• Step 6: Review the Projected Results: Compare the projected lump-sum withdrawal, value of annuity and monthly pension and retirement corpus.

Benefits of the Indian Overseas Bank NPS Calculator

The National Pension Scheme calculator helps investors to:

• Visualise Clear Retirement Corpus: Provides an approximate value of the expected amount of the retirement corpus and monthly pension when using the National Pension Scheme, which will help the subscribers to know the potential outcomes with respect to their contribution pattern.
  
  
• Set Realistic Contribution Planning: Assists the user to determine the monthly or annual contribution level to make to the NPS based on the level of income, risks and long-term retirement objectives.
  
  
• Market-Linked Fund Allocation: The customer has an option of choosing how the money will be invested in asset classes, where the returns will be based on the market performance and long-term investment behaviour.
  
  
• Choosing Pension Fund Managers: Gives liberty of choice in regards to the number of various pension fund managers and types of investments to be undertaken based on predisposing and projected returns.

Tax Implications on Your NPS Returns

The National Pension Scheme offers tax benefits under multiple sections of the Income Tax Act:

Key Takeaways

Indian Overseas Bank NPS Calculator is used to determine the estimate of retirement corpus and monthly pension under the Indian Overseas Bank NPS Scheme, depending on the age, the amount of contributions, and the number of years the money is to be invested. It reflects the main characteristics of NPS, including partial withdrawal in 3 years, the ability to withdraw in Tier II, and an obligatory allocation of annuity at retirement. The calculator helps in the systematic planning of retirement, and enables comparison of contribution amounts, investment time, and fund options linked to the market and also indicates possible tax advantages under Sections 80CCD(1), 80CCD(1B), and 80CCD(2).