Everyone has a question about life after retirement—where will the monthly income come from? Keeping this in mind, the NPS Trust has launched a new tool, which does a comparative analysis of two pension schemes—NPS (National Pension System) and UPS (Unified Pension Scheme). This calculator, available on the trust's website, tells how much pension and lump sum amount you can get at the time of retirement by investing in these two schemes.

UPS is designed for those employees who want a fixed monthly pension and also want to distance themselves from market risk. In contrast, NPS is a market-linked scheme, in which the benefit depends entirely on the return on investment. In UPS, the monthly pension is fixed, but the total return can be limited. On the other hand, in NPS, the return can be higher along with the risk.

This new tool of the trust shows you the result of both these schemes simultaneously according to your age, current salary, job tenure, annual salary increment, DA growth, and expected return. For example, if an employee is working at the age of 35 and will retire at the age of 60, then in UPS he can get a fixed pension of about ₹37,626, whereas in NPS this pension can be up to ₹55,295 at 8% return and ₹1,05,951 at 12% return. The lump sum amount and total lifetime benefit can also be many times higher according to the return in NPS.

But it is important to keep in mind that this calculator only gives an estimate. In real life, salary increases, economic conditions, and market movements can affect these estimates. In such a situation, before choosing any plan, one must understand his needs and risk-taking capacity.

This Unified Pension Scheme Calculator of NPS Trust can be very useful for those who are still confused about retirement planning. This tool will help them make a better decision by giving a clear comparison.

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