NPS Calculator: How to Get ₹1 Lakh Monthly Pension and ₹2.5 Crore Lump Sum by Investing Early
Planning your retirement wisely can help you build a steady income for life. With the help of an NPS Calculator , you can estimate how disciplined investing today may generate a monthly pension of over ₹1 lakh along with a lump sum of nearly ₹2.5 crore at retirement. Here’s how it works.
What Is NPS and Why It Matters for Retirement Planning?
The National Pension System (NPS) is a government-backed retirement savings scheme designed to help individuals create a secure financial future. It allows subscribers to invest regularly during their working years and receive a pension after retirement.
One of the biggest advantages of NPS is the flexibility it offers in choosing investment options and the benefit of long-term compounding.
How Much Should You Invest to Get ₹1 Lakh Monthly Pension ?
Let’s understand the calculation using an example:
If you invest ₹12,000 every month under the Active Choice option, here’s what your contribution looks like:
This ₹50.4 lakh is your total personal contribution over the investment period.
How Does Your NPS Corpus Grow Over Time?
Under NPS, your funds are invested in a mix of:
Assuming an average annual return of 10% (market-linked and not guaranteed), your retirement corpus at age 60 could grow to approximately:
₹4.10 Crore
This massive jump from ₹50.4 lakh to ₹4.10 crore highlights the power of compounding when you start investing early.
How You Can Get ₹2.46 Crore Lump Sum at Retirement
As per NPS withdrawal rules:
So, 60% of ₹4.10 crore equals:
₹2.46 Crore (Approx.)
This amount can be used for major life goals, medical security, or reinvestment after retirement.
How to Get ₹1 Lakh+ Monthly Pension Through Annuity
The remaining 40% of the corpus must be used to purchase an annuity plan.
Based on this, your expected pension could be approximately:
₹1,09,000+ per month
If you choose to invest more than the mandatory 40% in annuity, your monthly pension can increase further.
Why Starting at 25 Makes a Big Difference
Beginning your retirement journey early gives you:
Even moderate monthly investments can turn into crores over time if given enough years to grow.
Using an NPS Calculator helps you visualise your retirement goals clearly. By investing ₹12,000 monthly from age 25, you could potentially build a ₹4+ crore corpus, receive ₹2.46 crore as a tax-free lump sum, and enjoy a pension of over ₹1 lakh per month after retirement. Retirement planning is not about how much you earn - it’s about how early and consistently you invest.
What Is NPS and Why It Matters for Retirement Planning?
The National Pension System (NPS) is a government-backed retirement savings scheme designed to help individuals create a secure financial future. It allows subscribers to invest regularly during their working years and receive a pension after retirement.
One of the biggest advantages of NPS is the flexibility it offers in choosing investment options and the benefit of long-term compounding.
How Much Should You Invest to Get ₹1 Lakh Monthly Pension ?
Let’s understand the calculation using an example:
- Starting Age: 25 years
- Retirement Age: 60 years
- Monthly Investment: ₹12,000
- Investment Duration: 35 years
If you invest ₹12,000 every month under the Active Choice option, here’s what your contribution looks like:
- Annual Investment: ₹12,000 × 12 = ₹1,44,000
- Total Investment Over 35 Years: ₹1,44,000 × 35 = ₹50,40,000
This ₹50.4 lakh is your total personal contribution over the investment period.
How Does Your NPS Corpus Grow Over Time?
Under NPS, your funds are invested in a mix of:
- Equity
- Corporate Bonds
- Government Securities
Assuming an average annual return of 10% (market-linked and not guaranteed), your retirement corpus at age 60 could grow to approximately:
₹4.10 Crore
This massive jump from ₹50.4 lakh to ₹4.10 crore highlights the power of compounding when you start investing early.
How You Can Get ₹2.46 Crore Lump Sum at Retirement
As per NPS withdrawal rules:
- You can withdraw 60% of the total corpus tax-free at retirement.
So, 60% of ₹4.10 crore equals:
₹2.46 Crore (Approx.)
This amount can be used for major life goals, medical security, or reinvestment after retirement.
How to Get ₹1 Lakh+ Monthly Pension Through Annuity
The remaining 40% of the corpus must be used to purchase an annuity plan.
- Amount Invested in Annuity: ₹1.64 crore
- Estimated Annuity Rate: Around 8% (subject to change)
Based on this, your expected pension could be approximately:
₹1,09,000+ per month
If you choose to invest more than the mandatory 40% in annuity, your monthly pension can increase further.
Why Starting at 25 Makes a Big Difference
Beginning your retirement journey early gives you:
- Lower monthly burden
- Longer compounding period
- Higher potential corpus
- Greater financial security
Even moderate monthly investments can turn into crores over time if given enough years to grow.
Using an NPS Calculator helps you visualise your retirement goals clearly. By investing ₹12,000 monthly from age 25, you could potentially build a ₹4+ crore corpus, receive ₹2.46 crore as a tax-free lump sum, and enjoy a pension of over ₹1 lakh per month after retirement. Retirement planning is not about how much you earn - it’s about how early and consistently you invest.
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