UCO Bank NPS Calculator

What is the UCO Bank NPS Calculator?

The UCO Bank NPS Calculator is a tool that can assist investors in determining retirement savings under the National Pension Scheme based on the amount contribution, length of investment and anticipated rate of return. It reflects NPS withdrawal regulations, which permit partial withdrawals in three years and complete flexibility in Tier II accounts. Government subscribers receive the standard 60% lump sum and 40% annuity plan at retirement, and non-government subscribers are free to take up to 80% of the corpus as a lump sum and 20% as an annuity. It helps users estimate how much they will receive upon retirement as a corpus and a monthly pension payment.

How Does the UCO Bank NPS Calculator Work?

The UCO Bank NPS Calculator works on the principle of compound growth to estimate long-term retirement savings. It calculates how regular contributions grow over time based on an assumed rate of return and the total investment period.

The NPS calculator applies the standard compound interest formula:

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

The investor begins investment when he is 34 years old, and he will retire when he is 60. The monthly contribution is ₹8,500, and the annual return is assumed to be 8.5%.

So,

• Investment Duration: 26 years
• Total Contribution: ₹8,500 × 12 × 26 = ₹26,52,000

According to the long-term compounding, the projected amount of the retirement corpus can be approximately ₹85 lakh to ₹90 lakh.

Now, if the investor is a government employee, a lump sum of up to 60% of the corpus can be drawn at retirement, which is around ₹51 - ₹54 lakh. The other 40% approximately ₹34 - ₹36 lakh, is invested in buying an annuity.

Based on prevailing annuity rates and the option selected at retirement, this annuity may generate an indicative monthly pension of around ₹8,000 to ₹12,000.

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 UCO Bank NPS Calculator?

To compute your estimated retirement corpus and pension benefits using the UCO Bank NPS Calculator, use the following steps:

• Step 1: You need to enter your present age to establish the initial point of investment.
• Step 2: Select a retirement age in order to determine the period of investment.
• Step 3: Add your monthly or annual NPS contribution amount.
• Step 4: Choose the assumed rate of return on long-term NPS performance.
• Step 5: Select the retirement annuity percentage to buy the pension.
• Step 6: Examine the estimated retirement funds, lump-sum payout, annuity amount and annual pension.

Benefits of the UCO Bank NPS Calculator

The National Pension Scheme calculator helps investors to:

• Visualise Clear Retirement Corpus: Gives a clear picture of the estimated retirement corpus and pension so that the users get to know the end payout in the National Pension Scheme.
• Set Realistic Contribution Planning: Assists users in determining the amount of contribution to make per month or year, depending on their income, retirement objectives, and the time of the investment.
• Investment Duration Comparison: Allows the comparison of various retirement ages to determine the effect of the duration of investment on the final corpus and pension.
• Informed Pension Decisions: Shows the effects of contribution and allocation of annuity on the monthly pension that a person will receive upon retirement, helping them make better decisions.

Tax Implications on Your NPS Returns

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

Key Takeaways

UCO Bank NPS Calculator is used to estimate the retirement corpus and monthly pension under the UCO Bank NPS Scheme using the age, the amount of contribution and duration of investment. It reflects major NPS characteristics like partial withdrawal after 3 years, flexibility in Tier II withdrawals, and compulsory allocation of annuities during retirement. The calculator facilitates effective retirement planning by allowing the comparison of the levels of contributions, terms of investment, market-linked funds, and the tax benefits available with Sections 80CCD(1), 80CCD(1B) and 80CCD(2).