NPS ( National Pension Scheme) AFTER 30 YEARS

 National Pension Scheme (NPS) Estimated Accumulation After 30 Years


This is an estimated calculation of the amount that may be accumulated under the National Pension Scheme (NPS) after 30 years. This is not an investment recommendation but an approximate projection based on current salary structures and assumptions.



1. Basic Information:


When an individual joins employment and contributes to NPS, both the employee and the employer make monthly contributions. The following assumptions are made for this calculation:


Basic Pay at the Time of Joining: ₹21,400


Estimated Basic Pay at Retirement: ₹80,000


Gratuity (Approximate): ₹20,00,000


Earned Leave Encashment: ₹12,00,000


50% Dearness Allowance (DA) is assumed on the basic pay.



2. First Month’s NPS Contribution:


If an individual joins with a basic pay of ₹21,400, their first month’s NPS contribution would be:


Basic Pay: ₹21,400


50% Dearness Allowance (DA): ₹10,700


Total Salary: ₹32,100


Employee’s NPS Contribution (10%): ₹3,210


Employer’s NPS Contribution (14%): ₹4,494


Total NPS Contribution in the First Month: ₹7,704




3. NPS Contribution After 30 Years:


If the individual remains in service for 30 years, their estimated basic pay at retirement is ₹80,000. Assuming a 50% DA, their total salary would be ₹1,20,000.


Basic Pay (Approximate at Retirement): ₹80,000


50% Dearness Allowance (DA): ₹40,000


Total Salary: ₹1,20,000


Employee’s NPS Contribution (10%): ₹12,000


Employer’s NPS Contribution (14%): ₹16,800


Total NPS Contribution per Month: ₹28,800



4. Average NPS Contribution Over 30 Years:


The average monthly contribution over 30 years is estimated to be ₹18,252. Based on this, the total employee contribution over 30 years is calculated as follows:


Total Employee Contribution: ₹65,70,720


Assumed 6% Annual Growth Rate: ₹1,18,27,296


Total Corpus After 30 Years: ₹65,70,720 + ₹1,18,27,296 = ₹1,83,98,016



5. NPS Withdrawal and Pension Calculation:


According to NPS withdrawal rules, 60% of the accumulated corpus can be withdrawn as a lump sum, while 40% must be used for an annuity (pension). The estimated breakup is as follows:


60% Lump Sum Withdrawal: ₹1,10,38,809


40% Annuity for Pension: ₹73,59,207


Estimated Monthly Pension: ₹49,000



6. Conclusion:


Based on this calculation, if an individual joins with a basic pay of ₹21,400 and retires with a basic pay of ₹80,000, they may accumulate approximately ₹1.83 crore in their NPS account after 30 years. They can withdraw ₹1.10 crore as a lump sum and receive an estimated monthly pension of ₹49,000.


This is only an estimated projection and actual figures may vary depending on salary increments, DA fluctuations, and changes in NPS policies.




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