How to Calculate the National Pension Scheme?

The National Pension Scheme is a government-run pension scheme that offers excellent retirement saving options to all the citizens of India. Anyone employed in the private or public sector can get enrolled in the NPS and build up a retirement corpus for himself. The National Pension Scheme offers various other benefits too, and this makes the scheme an ideal choice for those who like planning ahead for their golden years. Take a look at this article to know more about the NPS and how you can invest properly in the scheme to get the best returns.

Using the NPS calculator online

As stated, you need to plan your retirement corpus in accordance to your needs. You can invest in various sums in the NPS account, with the minimum yearly amount being INR 1000. It is always a good idea to use the NPS calculator online to calculate how much you should invest in order to have a secured retirement. The online NPS calculator takes the following into consideration:

• Age -
  This is an important factor as the age will determine how many years you have to save in the NPS account.
  
  

• Principal -
  The amount you invest will determine your return.
  
  

• Interest -
  The interest you expect to earn will also have an impact on the NPS investment online.
  
  

• Percentage of an annuity -
  The percentage of the fund you want to invest in the annuity is another important factor that the NPS calculator will look for.

Once you enter these figures in the NPS calculator online, your returns will be shown to you.

NPS investment online

It is very easy to start an NPS investment online. You can use any reliable app such as the ETmoney app and instantly start an online NPS account. The advantages of having your NPS investment online include:

• Very easy to open -
  You can open a National Pension Scheme account online in a very simple and hassle-free manner. You can simply download the ETmoney app and get the job done in a matter of a few minutes. You can do so from the comforts of your own home, as the account is accessible remotely. 

• Easy to make payments -
  You can make all future contributions to the NPS account online with the click of a few buttons only. This makes it very simple for you to be regular and more disciplined with your savings in the NPS account.
  
  

• Can keep track -
  The National Savings Scheme details are available on the app you use to open the account. If you need to go and fetch any information related to the account, or you want to go over the details of your account, you can do so online in a matter of a few minutes.
  
  

• Easy to make withdrawals -
  Partial withdrawals are allowed in NPS after you complete seven years in the policy. If you need to make a withdrawal to meet an emergency, you can raise a request for it online and have the money in your bank account in a very short span of time.

The documentation is very simple and so you can instantly open the NPS account online. You just need a few basic KYC documents and your online NPS account will be set up.

The final word

If you are looking to invest in a reliable pension scheme, NPS is one of the best options you have. You can use a very effective NPS calculator online to calculate your returns before you invest. Then, you can make the NPS investment online in a trustworthy and quick manner. With so many benefits on offer, you should open the NPS account right away, if you have not done so already.

How to open the NPS Account through ETMONEY App?

The National Pension System (NPS) is a market-linked retirement savings avenue which helps you plan for a tax-effective retirement corpus. The scheme helps you build up a substantial retirement corpus over your working life and then gives you a tax-free benefit when you reach 60 years of age. Moreover, the NPS scheme also promises pension payments throughout your lifetime after it matures. These pension payments help you get a regular stream of income even post-retirement.

Since NPS investment is an attractive choice, many individuals opt for the scheme. There are various modes of investing into the NPS scheme. The ETMONEY mobile application also allows you to open an online NPS account. In fact, investing in the NPS scheme becomes quite convenient through the ETMONEY app. Do you know how to open your NPS account through the app?

Here’s the detailed process of opening an online NPS account through the ETMONEY app –

• Download the ETMONEY application on your Smartphone from Google Play Store or Apple Store depending on your mobile phone’s operating system
• Once downloaded, register on the application using your email ID
• The application would ask your permission to access your phone inbox to send and receive SMS. You can hit ‘Continue’ to grant access to choose ‘Ask me Later’ to proceed to the next page
• The application would, then, create your profile. You would see different options for investments, insurance, and loans. You can also track your monthly expenses using the application
• On the app’s home page, there would be an option ‘Retire Rich’ under which you would be given the option to invest in the NPS scheme
• Choose the NPS investment option and a new screen would appear. It would show you the tax benefits of NPS, its returns, how it works, NPS calculator, how the investment is allocated and also FAQs on NPS
• On the bottom of the page, there is an ‘Invest Now’ button. Click on it to begin your investments 
• You would then be asked if you have invested in NPS earlier and your date of birth in DD/MM/YYYY format
• Then you would have to choose your risk profile from Aggressive, Moderate, or Conservative profile options. The aggressive profile has a high equity exposure while Moderate has a moderate exposure. Conservative profile, on the other hand, has low equity exposure thereby preventing your investments from market volatility. Moreover, based on your age, the application would also recommend the suitable risk profile which you should choose.
• After you choose your risk profile, the fund managers would be listed. Their respective fund sizes and 5-year returns would also be shown so that you can choose a suitable fund manager to manage your investments and give you the best returns
• After the fund manager is selected, you would be asked the lump sum investment amount which you would like to invest
• Specify the amount and click to agree on the terms and conditions of the application
• Click on ‘Continue’ and you would be shown the total amount payable including GST
• Confirm the amount to proceed to invest
• You would  have to enter in your PAN Card number as it is compulsory for NPS investments
• Once your PAN number is verified, choose whether you are an Indian resident or an NRI
• Provide your bank account details and scan and upload a copy of your account’s canceled cheque for verification purposes
• Thereafter, you have to make the payment from your bank account to complete the investment
• Once the investment is done, you would get a confirmation message and also your PRAN account number through which you can track and monitor your NPS investments

The ETMONEY app, therefore, eases the whole process of opening an online NPS account. It takes a few minutes to invest in NPS through the application. The application also helps you track your investment and monitor the returns easily with a few clicks of the button. So, if you want to invest in the NPS scheme, download and use the ETMONEY app for a convenient way to invest.