Unified Pension Scheme vs National Pension Scheme Calculator

Last Updated on August 28, 2024 at 10:27 amUse this free calculator to find out if you can stay invested in the National Pension Scheme or must consider a switch to the Unified Pension Scheme (for Central government subscribers only at the time of writing).We have already covered the salient features of the Unified Pension Scheme and other considerations in our coverage:The underlying logic behind the Unified Pension Scheme vs National Pension Scheme CalculatorCan your future NPS corpus provide the same pension expected from UPS (with inflation indexation)? The NPS annuity provides part of this pension. Inflation indexation is provided via systematic withdrawals from the balance NPS corpus (if any!).If the answer is yes, then stay in NPS. If the answer is no, find out how much the shortfall is. For example, you expect to live 30 years after retirement, and NPS can provide an inflation-indexed pension for 29 years. The shortfall (1Y) is small. NPS and UPS are still comparable. If the shortfall is large (several years), UPS is better than NPS.Important: The corpus from other investments is crucial here. If this is significant, one can afford to stay with the NPS even if UPS is more beneficial. So, we must go beyond the calculator and look at personal circumstances.Additional thumb rules for holistically deciding between UPS and NPS will be published tomorrow. Stay tuned.Caution and Disclaimer: This calculator is based on the initial UPS press release and involves several projections. There may be significant deviations between these numbers and real-life values. This must be treated as a guesstimate. Use with discretion. This calculator may have bugs and errors in understanding. Please check all formulae to see if they make sense.Note: The expected UPS lump sum at retirement is relatively small and is not used to decide between the NPS and UPS.Inputs:Current Service (years, no decimals)Years to retirement (years, no decimals)Expected years in retirement (years)Current Basic Pay (monthly)Current DA rateProjected increase in basic payCurrent total NPS contributionExpected growth in NPS contributionsCurrent NPS CorpusExpected rate of NPS returnNPS annuity rate at retirementExpected increase in UPS pension after retirementOutputsExpected NPS corpus at retirementExpected basic pay one year before retirementExpected basic pay at retirementExpected UPS pension at retirementNPS Corpus needed to match the UPS pensionRemaining NPS CorpusHow long will the corpus last? <– Key outputIs the NPS corpus expected to be large enough to generate an inflation-indexed pension like UPS? <– Key outputExpected DA at retirementExpected UPS lump sum at retirement. This relatively small amount is not used to decide between NPS and UPS.ScreenshotsScreenshot of the Unified Pension Scheme vs National Pension Scheme Calculator part oneScreenshot of the Unified Pension Scheme vs National Pension Scheme Calculator part twoDownload the free NPS vs UPS Calculator!Version 8: Updated 28th Aug. with withdrawal rates in a separate sheet. Please check back for version updates. For feedback and bug reports, email freefincal [AT ] gmail [DOT ]comDo share this article with your friends using the buttons below. 🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users! Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this! New Tool! => Track your mutual funds and stock investments with this Google Sheet! 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