What pension will I get from NPS if I exit today?

A reader asks, “What are the current NPS Annuity Rates? How can I find the pension I will get for my corpus if I exit today?”

The NPS is a market-linked retirement product. The contributions are defined, but the benefits are not because the final corpus depends on market conditions. The NPS subscriber must buy an annuity from an insurer at exit with at least 40% of the corpus. The NPS regular has multiple options, discussed here:

• How to optimize NPS withdrawals after retirement
• NPS Systematic Lump Sum Withdrawal (SLW) Facility Explained.
• Also see: Why the NPS should allow the purchase of government bonds for pension.

In this article, we focus only on the annuity rates. Annuity rates are subject to change at least once a year. They depend on the age of the NPS subscriber and spouse and the corpus allocated for purchase. The annuity rates shown here are as of 30th March 2024. You can find the exact annuity rate for your circumstances via the NPS Annuity Quote Generator. Also, note that the rates may change from when you compute them to when you purchase!

Annuity Options available:

• Annuity for Life with ROP – The subscriber will get an annuity for life.  On the death of the Subscriber, 100% of the purchase price will be returned to the nominee(s).
• Joint Life Annuity with ROP – The Subscriber will get an annuity for life. After this, the spouse will get the annuity for life. Then, 100% of the purchase price will be returned to the nominee(s).
• NPS – Family Income with ROP – Subscriber will get an annuity for life. On the death of the Subscriber, the annuity will be payable to the spouse for life. On the spouse’s death, the annuity will pass to the dependent mother and then to the dependent father of the Subscriber. On the death of the last annuitant, 100% of the purchase price will be returned to the surviving children of the subscriber / to legal heirs as applicable.
• Annuity for Life without ROP –The subscriber will get an annuity for life.
• Joint Life Annuity without ROP – The subscriber will get an annuity for life. After this, the spouse will get the annuity for life. 

We shall only show the joint life annuity with and without ROP.

Monthly annuity rates for a 60-year-old subscriber with a 58-year-old spouse and with a 50 Lakhs purchase price

Monthly annuity rates for a 60-year-old subscriber with a 58-year-old spouse and with 100 Lakhs purchase price

The regulator wants to come up with special rates for NPS subscribers soon. As mentioned above, this can easily be accomplished if NPS subscribers can buy government bonds.