How is the National Pension Scheme Calculated in India?

The National Pension Scheme helps you earn a decent pension amount after retirement especially if you start investing from the early stages of your career. The pension depends on the amount you deposit every month and on various other factors like the number of years you contributed towards NPS, the performance of your assets, allocation of the assets, etc. Therefore, calculating the exact pension that is supposed to be generated post-retirement is quite difficult. 

Many online platforms offer an NPS calculator to make this process easy for those interested in NPS. It considers the above-mentioned factors and offers a rough estimate of the pension amount. The below steps can guide you while using an NPS calculator: 

Step 1: Enter your age and let the calculator determine the number of years left for your retirement. 

Step 2: Enter the amount that you can deposit in NPS every month. Now, enter the rate at which you want your NPS deposits to grow. 

Step 3: Provide additional details like annuity period, i.e. the age till you wish to receive a pension after retirement. Finally, enter the annuity rate i.e. the rate at which you expect the annuity to grow. 

Only 40% of the accumulated NPS funds go into the annuity and the remaining 60% is paid directly to you after retirement. 

Step 4: After furnishing all the above-mentioned details, the calculator will predict the pension amount. 

The pension amount shown by the NPS calculator is not accurate as it depends on the performance of different instruments that you have selected to deposit in. However, if you have invested in a fixed deposit, guessing the accurate returns would be quite easy. The fixed returns and tenor for which the deposits are locked in allow you to calculate the FD returns precisely. FD calculators are available online to make these calculations quickly for you. 

Apart from an accurate display of interest earnings, you can also expect the FDs to be a lot more lenient than NPS when it comes to premature withdrawals. For example, Bajaj Finance FD allows early withdrawal provided that a minimum lock-in period of 3 months is completed. The high FD interest rate offered by this FD scheme helps you meet your financial goals smoothly. The main features of Bajaj Finance FD are discussed below:

Easy investment options 

Bajaj Finance FD helps you to open a fixed deposit account from your home, office, or anywhere as an online FD form is available on its portal. Also, if you have registered your documents in CKYC, just share your CKYC id and get the documents verified online. The payment can be processed easily via net banking or UPI. A 0.10% higher FD rate will be applicable on choosing this easy investment option. 

Multi-deposit feature 

With the multi-deposit feature, you don’t have to fill separate forms and keep completing the other formalities to open multiple FD accounts simultaneously. Just divide your corpus into chunks and invest them in tenor as per your investment preferences. Laddering FDs becomes seamless due to this feature and it enhances your liquidity options as well. 


You can expect your funds to grow steadily on investing in Bajaj Finance FD. It is because it is a stable investment option and recognized by CRISIL and ICRA who have rated it highly for stability. 

Bajaj Finance FD gives you the opportunity of earning higher returns after retirement as you become eligible for a 0.25% higher FD rate on reaching the age of 60. The multiple interest payout options give you the option of managing your finances smoothly in the retirement years.