South Indian Bank NPS Calculator

What is the South Indian Bank NPS Calculator?

The South Indian Bank NPS Calculator is an online calculator which assists subscribers in determining the retirement benefits by making an investment in NPS. It uses parameters like investment amount, expected returns and years until retirement to give users an estimate of their NPS investments.

Government subscribers can draw up to 60% of the accrued corpus at the time of retirement, with the remaining 40% invested in an annuity. Non-government subscribers, on the other hand, can withdraw up to 80% in a lump sum, with only 20% being allocated to an annuity.

How Does the South Indian Bank NPS Calculator Work?

The South Indian Bank NPS Calculator is based on the principle of compound growth to estimate retirement savings over the long term. It determines the amount on which regular contributions are to be accumulated over time with reference to the anticipated rate of return and the total time of investment.

The calculator applies the standard compound interest formula:

Consider a government employee planning retirement through the National Pension System.

The investor invests when he is 35 years old and retires when he is 60 years old. A contribution amount of ₹6,800 is made monthly with an annual rate of 8%.

So,

• Investment Duration: 25 years
• Total Contribution: ₹6,800 × 12 × 25 = ₹20,40,000

According to long-term compounding, the South Indian Bank NPS Calculator will give the retirement corpus at about ₹70 lakh to ₹76 lakh.

The maximum amount of the corpus that can be taken out at retirement in a lump sum is up to 60% of the corpus, which is approximately ₹42 - ₹46 lakh. The rest 40% or so, ₹28 - ₹30 lakh, is invested in annuity.

This annuity can give a monthly pension of between ₹14,000 and ₹17,000, depending on the current annuity rates and the option taken.

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 South Indian Bank NPS Calculator?

In order to determine the projected amount of retirement corpus and pension benefits, using the South Indian Bank NPS Calculator, you can follow these steps:

• Step 1: Select your current age and determine the point of beginning investment.
• Step 2: Decide on the age of retirement to know how long to invest.
• Step 3: Enter your monthly or annual NPS contribution amount.
• Step 4: Select an assumed rate of return based on the long-term trends of NPS performance.
• Step 5: Determine the portion of the retirement corpus to be invested in the purchase of annuities.
• Step 6: Evaluate the projected retirement corpus, lump-sum withdrawal, value of an annuity and projected monthly pension.

Benefits of the South Indian Bank NPS Calculator

The National Pension Scheme calculator helps investors to:

• Simple to use: It requires simple inputs such as the age, amount of contribution and projected returns.
  
  
• Instant Projections: Provides the estimate of the 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 Your NPS Returns

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

Key Takeaways

The South Indian Bank NPS Calculator assists depositors in estimating the corpus and monthly pension to be received upon retirement based on their age, contribution, and investment tenure. It reflects the main features of NPS, like partial withdrawal after three years, flexibility in the Tier II withdrawals, and the applicable annuity allocation requirements at retirement. The calculator facilitates organised and informed retirement planning by making comparisons between the levels of contribution, the duration of investment, and the tax benefits.