UPS vs NPS Pension Calculator

Current Basic Pay: ₹50,000
Dearness Allowance (55%): ₹27,500
Current NPS Contribution Per Month (14% + 10%): ₹18,600
Expected Basic Pay at Retirement (2045): ₹193,484

Your basic salary at retirement would be ₹193,484.

UPS Pension

Under UPS, monthly pension is 50% of average basic pay (not DA) over the last 12 months of the service. Minimum pension is assured to be atleast ₹10,000.
Expected Monthly Pension under UPS (2045): ₹193,484 * 0.5 = ₹96,742

UPS Lumpsum

Lumpsum under UPS is 1/10 of last drawn monthly emoluments (basic + DA) for every 6 years of completed service.
We can calculate it by multiplying (basic + DA) * 0.2 * years of service
Basic + DA at retirement: ₹193,484 + ₹106,416 = ₹299,900
Expected Lumpsum under UPS: ₹299,900 * 0.2 * 20 = ₹1,799,401

Other Details

1. UPS is only available if you complete minimum 10 years of service.
2. UPS pension is 50% of basic salary only if you complete atleast 25 years of service. Otherwise it will be proportionate for lesser service period.
3. After your demise, 60% of your last pension will be paid to your spouse.
4. Your pension will increase proportional to Dearness relief based on inflation.

We calculate the NPS corpus amount assuming NPS return of 8% yearly and an increase of NPS contribution by 7% yearly (based on salary).
NPS tier-1 corpus amount after 20 years: ₹27,524,014

At retirement we will withdraw 60% of the corpus as lumpsum and leave the rest (40%) for investing in annuity.
Lumpsum to withdraw: ₹16,514,408
Investing in annuity: ₹11,009,606

Out of the withdrawn lumpsum, we will invest some portion (75%) in a systematic withdrawl plan (SWP) of 30 years for increasing our monthly income.
Investing in SWP: ₹12,385,806

NPS Pension

We assume a return rate of 6.5% on annuity and 7% on SWP.
Pension from Annuity Plan: ₹59,635
Income from SWP: ₹58,751
Total Monthly Pension under NPS: ₹118,387
Pension from annuity plan will be constant, but from SWP will increase by (3%) every year. Using this we can calculate our total pension at various ages.
Total Monthly Pension (at Age 70): ₹138,592
Total Monthly Pension (at Age 80): ₹165,747
Total Monthly Pension (at Age 90): ₹202,240

Out of the withdrawn lumpsum, we invested a portion of it (75%) in the systematic withdrawl plan (SWP) for regular income.
We can calculate the net lumpsum we would get by subtracting this from the total lumpsum.
Net Lumpsum under NPS at Retirement: ₹4,128,602