NPS Annuity Calculator
Plan your pension through NPS annuity investment
Age Details
NPS Account Details
Annuity Details
Note: Minimum 40% of NPS corpus must be invested in annuity
Different options affect your monthly pension amount
NPS Annuity Results
What is NPS Reinvestment?
NPS (National Pension System) reinvestment refers to the strategic allocation of your accumulated NPS corpus at retirement. Upon reaching 60 years, subscribers can withdraw up to 60% of their corpus tax-free, while the remaining 40% must be used to purchase an annuity for regular pension income.
Key Components
NPS reinvestment planning involves understanding annuity options, tax implications, and withdrawal rules. The decision on how to allocate your corpus between lump sum withdrawal and annuity purchase can significantly impact your retirement income stream.
Why Plan NPS Reinvestment?
- Optimize retirement income through strategic allocation
- Balance between immediate needs and regular pension
- Understand tax implications of different options
- Choose suitable annuity plans for steady income
Using the NPS Calculator
Input your accumulated NPS corpus, desired withdrawal percentage, and preferred annuity options to understand your potential retirement income stream. This calculator helps you make informed decisions about your NPS corpus utilization at retirement.
Planning Your NPS Annuity
This calculator estimates your monthly pension from the annuity portion of your NPS corpus. Enter the corpus amount to be annuitised, your age at retirement, and the expected annuity rate. It helps you understand the income you can expect and choose between different annuity providers and options.
Frequently Asked Questions
What is NPS reinvestment in annuity?
When you retire from NPS, at least 40% of your corpus must be used to buy an annuity from an IRDA-approved insurance company. This annuity provides a regular pension for life. The reinvestment calculator helps you estimate the monthly pension based on the annuity rate offered.
Which annuity option should I choose?
Options include life annuity (pension for life), joint life annuity (pension continues for spouse), annuity with return of purchase price (corpus returned to nominee on death), and annuity increasing at a fixed rate. Joint life with return of purchase price is the most popular choice for married subscribers.
What are current annuity rates in India?
Annuity rates for NPS subscribers typically range from 5-7% annually, depending on the insurance company, annuity type, and your age at purchase. Higher rates apply to older subscribers and life-only annuities (without return of purchase price). Compare rates across LIC, SBI Life, HDFC Life, and ICICI Prudential before choosing.
