NPS Corpus Calculator
UPS Lump Sum & Pension Calculator
The rolling out of Unified Pension Scheme (UPS) has put employees in dilemma making them confused whether to switch to it or continue with the NPS. If you are one among them, and want to compare the pros and cons of both the schemes before taking a final decision, then this article is for you. Here, we have provided an NPS vs UPS calculator for you to weigh the monetary benefits of both the schemes, and to help you make a prudent decision.
Table of Contents
How to Use NPS vs UPS Calculator
Just put in your details like the NPS corpus collected till June 2025, your month of retirement, expected fitment factors for pay commission years 2026, 2036 and 2046, expected rate of return and then click on the calculate button.
The calculator will give you your NPS corpus amount, amount payable to you, amount to be put in annuity, last basic pay and last DA%.
Now use the last basic pay and the last DA% in the UPS calculator, and you will get the UPS pension and UPS lumpsum amount payable to you.
Now compare the returns from both the regimes and check which one has more benefits to offer for you.
Comparison Between NPS and UPS
NPS, also known as National Pension Scheme was rolled out by the Central government in 2023 and became operational on 1-January-2024, where as the Unified Pension Scheme (UPS) will be effective on 01-April-2024, and the employees currently under NPS regime, and aspiring to switch over to UPS have to take the decision before the said date.
The main differences between the two schemes are tabulated below;
| Feature | NPS | UPS |
|---|---|---|
| Nature | Contributory | Contributory |
| Eligibility | Govt employees & Private employees | Govt employees only |
| Contribution Break Up | 10% of employees basic pay + DA by employee himself 14% of employees basic pay + DA by employer | 10% of employees basic pay + DA by employee himself 18.5% of employees basic pay + DA by employer |
| Withdrawal Amount as formula | 60% of the total NPS corpus | Lumpsum amount given by the formula 0.1(last average basic pay + DA)(L) |
| Withdrawal Amount in Rupees | Depends upon the length of service, performance of market. | Depends upon the length of service, time at which shift to UPS took place, and last average basic pay + DA. |
| Tax on withdrawal amount | Non Taxable | No orders yet |
| Amount in annuity | 40% of the NPS corpus | Not applicable |
| Pension | No assured pension. Depends upon the performance of the 40% of the lumpsum amount put in annuity | Assured pension. Min pension payable = 10000, and maximum pension = half of average basic pay for last 12 months + Dearness Relief |
| Family Pension | Not applicable | Applicable. Family pension = 60% of the last amount drawn by an employee |
| Minimum Service | No such limitation | 10 years |
| Security | Depends upon the market factors | Very secure and independent of the market factors to a very large extent |
There are other factors that one needs to consider while making a choice among the two;
Factor 1, Inflation Taming: The pension amount given under UPS regime takes care of the inflation through dearness relief that shall work just like the dearness allowance that is revised twice each year. No such thing is done in NPS regime. Here, the pension amount is linked to market, thus making it volatile and unpredictable.
Factor 2, Flexibility: NPS offers a variety of options like systematic withdrawal plan, choice to continue contributing till the age of 70, choice to change the investment layout etc. No such things are possible in UPS. UPS is simple and rigid, providing no choice to the employees.
Factor 3, Longevity of life: An employee needs to consider the expected number of years from his retirement to death to check whether the amount in annuity will be able to sustain him/her lifelong or not. There is no such headache in UPS, as it automatically takes care of everything through assured pension.
Factor 4: Amount of the money involved: If the amount payable to an employee at the time of retirement is very very high in one scheme, that needs to be kept in mind.
Keeping in mind the following, we can safely conclude the following;
- If the length of service is around 20 years, then UPS in general is better than NPS.
- If the length of service is more than 25 years, then one needs to give a preference to one among the two things, security and amount of money.
- If one prefers security and risk free money, then UPS is better.
- If one prefers the amount of money, then NPS is better. We say so because if a person is financially prudent, and makes a good use of the received amount, the returns can be very lucrative.
Also Check: UPS Pension Calculator
So, this was all about the topic. We are sure that you have weighed the monetary benefits of both the schemes using our NPS vs UPS calculator.
FAQs
Which one is better? UPS or NPS
Both NPS and UPS have a lot to offer, and the offerings depend upon a lot of factors like the length of service, taste of an employee etc. So we cannot out rightly declare one superior than the other unless we have the service data and preferences of an employee in front of us.
Which scheme is better for me, if I want to stay tension free?
If an employee wants to stay tension free, without having to worry about the market factors, then UPS is better. It is almost independent of market factors and offers assured pension, family pension and a lump sum amount also.
If I choose NPS over UPS, how can I make the best use of the scheme?
NPS can be put to best use through systematic withdrawal plan and by investing the lumpsum money wisely.
