Use this free calculator to find out in the event you can keep invested within the Nationwide Pension Scheme or think about switching to the Unified Pension Scheme. That is an up to date model of the calculator first printed in Aug 2024, incorporating the Jan 2025 Gazette Notification.
We have now tried to include all of the UPS important options into the calculator. Nonetheless, there might be some features which we might not have understood correctly. Due to this fact, totally perceive all of the formulae used. Recognize the assumptions made after which use them. If there are any points, please e mail freefincal [AT] gmail [dot] com. We will be busy attending some well being considerations within the subsequent two weeks. So please don’t anticipate a direct response. We will get again asap.
Up to date options:
- UPS lumpsum calculation
- UPS pension calculation primarily based on the ratio of acutal corpus to benchmark corpus (particulars in anotherr article)
- Please see the examples in Gazette notification and test if the maths within the calculator matchs that for all circumstances. If not please tell us.
We have now already coated the salient options of the Unified Pension Scheme and different issues in our protection:
The underlying logic behind the Unified Pension Scheme vs Nationwide Pension Scheme Calculator
Can your future NPS corpus present the identical pension anticipated from UPS (with inflation indexation)? The NPS annuity offers a part of this pension. Inflation indexation is offered by way of systematic withdrawals from the steadiness NPS corpus (if any!).
If the reply is sure, then keep in NPS. If the reply isn’t any, learn how a lot the shortfall is. For instance, you anticipate to dwell 30 years after retirement, and NPS can present an inflation-indexed pension for 29 years. The shortfall (1Y) is small. NPS and UPS are nonetheless comparable. If the shortfall is massive (a number of years), UPS is best than NPS.
Essential: The corpus from different investments is essential right here. If that is important, one can afford to stick with the NPS even when UPS is extra useful. So, we should transcend the calculator and have a look at private circumstances.
Extra thumb guidelines for holistically deciding between UPS and NPS will probably be printed tomorrow. Keep tuned.
Warning and Disclaimer: This calculator relies on the preliminary UPS press launch and includes a number of projections. There could also be important deviations between these numbers and real-life values. This have to be handled as a guesstimate. Use with discretion. This calculator might have bugs and errors in understanding. Please test all formulae to see in the event that they make sense.
Observe: The anticipated UPS lump sum at retirement is comparatively small and isn’t used to determine between the NPS and UPS.
Inputs:
- Present Service (years, no decimals)
- Years to retirement (years, no decimals)
- Anticipated years in retirement (years)
- Present Primary Pay (month-to-month)
- Present DA price
- Projected improve in fundamental pay
- Present whole NPS contribution
- Anticipated progress in NPS contributions
- Present NPS Corpus
- Anticipated price of NPS return
- NPS annuity price at retirement
- Anticipated improve in UPS pension after retirement
Outputs
- Anticipated NPS corpus at retirement
- Anticipated fundamental pay one 12 months earlier than retirement
- Anticipated fundamental pay at retirement
- Anticipated UPS pension at retirement
- NPS Corpus wanted to match the UPS pension
- Remaining NPS Corpus
- How lengthy will the corpus final? <– Key output
- Is the NPS corpus anticipated to be massive sufficient to generate an inflation-indexed pension like UPS? <– Key output
- Anticipated DA at retirement
- Anticipated UPS lump sum at retirement. This comparatively small quantity is just not used to determine between NPS and UPS.
Screenshots
Obtain the free NPS vs UPS Calculator model 10 up to date Jan 2025 after Gazette Notification!
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