NPS: NPS Trust has launched Unified Pension Scheme (UPS) calculator. UPS calculator can be seen on the website of NPS Trust. Know the complete calculation here, where will you get more pension
NPS: NPS Trust has launched Unified Pension Scheme (UPS) calculator. UPS calculator can be seen on the website of NPS Trust under the name of Unified Pension Scheme Calculator. Choose the right plan as per your need. So that your life is comfortable after retirement. The new calculator shows the estimated benefits of both the schemes together, so that employees can make a wise decision. Know the complete calculation here, where will you get more pension?
What is UPS?
The purpose of UPS is to attract those employees who want a fixed monthly pension on retirement. Also need a fixed lump sum amount. Also want to keep themselves safe from the risk of market fluctuations. Returns in NPS are completely dependent on the performance of the investment. Monthly pension will be fixed in UPS but the total benefit may also be limited.
How does the calculator work?
Employees can enter information like their age, salary, years of service, annual increment in salary, increase in DA and possible return on investment in the calculator. This calculator then shows how much pension you will get on retirement in UPS and NPS. It tells you that..
How much pension you will get every month
How much lump sum amount you will get
How much total benefit you will get in your entire life
An example: Case of a 35 year old employee
- Age: 35 years
- Jobs started: 20 May 2025
- Retirement age: 60 years
- Today’s basic salary: Rs 30,000
- Amount deposited in NPS: Rs 12 lakh
- Salary hike every year: 3%
- DA hike every year: 4%
- 60% amount to be withdrawn on retirement
- Annuity (rate of pension): 6%
- Expected return on investment: 8%, 10%, 12% (three different cases)
| Estimated Returns | UPS Monthly Pension (in Rs.) | UPS Lumpsum Amount (in Rs.) | UPS : Estimated lifetime benefit (in Rs) | NPS Monthly Pension (in Rs) | NPS Lumpsum Amount (in Rs) | NPS: Estimated lifetime benefit (in rupees) |
| 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 | Rs 4.5 crore |
| 12% | 37,626 + DA | 2,85,37,899 | 4.7 Crore | 1,05,951 | 3,17,85,277 | 6.3 Crore |
If the returns are low (8%) then UPS has a little more benefit because the monthly pension remains fixed.
If the returns are slightly higher (10%) then the total benefit of NPS is more than UPS.
If the returns are very good (12%) then the money you get from NPS is much more than UPS. But keep in mind that there is some risk involved in this as well.
Advice for employees
This calculator is just an estimate. The actual benefits are affected by a number of factors such as salary increases, market conditions and your risk-taking ability.
- Use the calculator: Enter your correct information and see for yourself which plan is best for you.
- Consider the risk: Do you want a fixed pension or are you willing to take risk for higher returns?
- Seek financial advice: Talk to a good advisor to make an intelligent retirement plan.
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