NPS: NPS Trust launched the Unified Pension Scheme (UPS) calculator. The UPS calculator can be seen as Unified Pension Scheme Calculator on the website of NPS Trust. Choose the right plan as per your need. So that your life remains comfortable after retirement. The new calculator shows the approximate advantage of both schemes simultaneously, so that employees can decide wisely. Learn here where the complete calculation will get more pension?
The aim of UPS is to attract employees who need a pavement pension on retirement. Also, a certain lump sum amount is also needed. At the same time, you want to keep themselves safe from the risk of market fluctuations. Return in NPS is completely dependent on the performance of investment. Monthly pension will be fixed in UPS, but the total profit can also be limited.
How does the calculator work?
Employees can fill their age, salary, year of service, annual increase in salary, increase in DA and possible returns on investment in calculator. Then this calculator shows how much pension you will get on retirement in UPS and NPS. It tells that ..
How much pension will be received every month
How much lump sum will be received
How much will you get in your whole life
An example: 35 -year -old employee case
Age: 35 years
Job starts: 20 May 2025
Retirement age: 60 years
Today’s Basic Salary: Rs 30,000
Dhan deposited in NPS: 12 lakh rupees
Increase in salary every year: 3%
DA increased every year: 4%
60% amount has to be withdrawn on retirement
Anuity (Pension Rate): 6%
Expect return on investment: 8%, 10%, 12%(three separate cases)
| Estimated return | UPS Monthly Pension (in Rupees) | UPS Lampsum Amount (in Rupees) | UPS: Estimated advantage of lifetime (in rupee) | NPS Monthly Pension (in Rupees) | NPS Lampsum Amount (in Rupees) | NPS: Estimated advantage of lifetime (in rupee) |
| 8% | 37,626 + da | 1,46,48,458 | 3.34 crores | 55,295 | 1,65,88,637 | 3.32 crores |
| 10% | 37,626 + da | 2,03,08,362 | 3.9 crore | 76,011 | 2,28,03,305 | 4.5 crores |
| 12% | 37,626 + da | 2,85,37,899 | 4.7 crores | 1,05,951 | 3,17,85,277 | 6.3 crore |
If the returns are low (8%), then UPS benefits a little more because monthly pension is fixed.
If the returns are slightly more (10%) then the total benefit of NPS is more than UPS.
If the returns are very good (12%), then the money received from NPS is much higher than UPS. But keep in mind that it also has some risk.
Advice for employees
This calculator only gives estimates. There are many reasons that affect the real advantages such as salary increase, market conditions and your risk raising ability.
Use calculator: Put your correct information and see yourself which plan is better.
Think at risk: Are you ready to take a risk for more returns?
Take financial advice: Talk to a good advisor to make the retirement plan wisely.