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NPS Vatsalya Calculator: ₹10,000 Annual Investment Can Make Your Child a Crorepati

The NPS Vatsalya Scheme allows you to create a substantial retirement corpus for your children by making regular contributions until they turn 18.

  • 1,252 Views | Updated on: May 05, 2025
Plan for Generations

As a parent, you aim to provide your child with essential building blocks, be it education, nutrition, or a healthy lifestyle. If you are on this journey of enabling your children to live the life of their dreams, you should also pay attention to their financial well-being. You must instill in them the right attitude toward saving, investing, and managing money.

But what if you could take it a step further and secure their financial independence even after retirement?

The NPS Vatsalya Scheme aims to achieve just that. It was announced by the Indian government in Budget 2024-25 and is managed by the Pension Fund Regulatory and Development Authority (PFRDA). It allows you to make regular contributions to the NPS Vatsalya account until your child turns 18. This accumulated corpus keeps on compounding until your child retires, enabling them to enjoy their post-retirement life without financial worries.

NPS Vatsalya Eligibility

The government has ensured that the scheme remains accessible to all. Thus, every Indian citizen who is below the age of 18 years can enjoy the benefits of this scheme. The account is opened in the name of the minor, who remains its sole beneficiary.

NPS Vatsalya Contribution

When you open an NPS Vatsalya account, you will be required to make an initial contribution of a minimum ₹1,000. After that, you must make annual contributions of at least ₹1,000 until the child turns 18.

There is, however, no maximum limit on the contribution, allowing you to plan according to your financial means. You can decide the exact contribution amount as per your expected corpus size using the NPS Vatsalya calculator.

NPS Vatsalya: Investment Calculation

How much can you expect to earn under this scheme? NPS Vatsalya calculator can provide clarity on this.

Let’s say you invest ₹10,000 annually in the NPS Vatsalya Scheme for 18 years until your child reaches the majority age. Assuming that you earned an average return of 10%, the corpus will reach a value of ₹5,00,000.

If your child opts to continue with the scheme on turning 18, the corpus will grow for another 42 years till their retirement age of 60. Do you know how much the corpus will amount to at that stage? A whopping ₹2.75 crore! Similarly, if we assume a more conservative return of 8%, the corpus will still grow to ₹1.02 crore till the child hits 60 years of age.

The NPS Vatsalya calculator thus shows that investing in this scheme can make your child a crorepati and enable them to live a comfortable life post-retirement. You can combine this scheme with other investment options, like life insurance, to further improve the financial security of your loved ones.

How to Open an NPS Vatsalya Account

There are two routes to get started with this scheme. First, you can contact the Points of Presence (POPs) registered with PFRDA, the list of which is available on the PFRDA website. Alternatively, you can access NPS Trust’s online platform (eNPS).

As every authorized POP may have slight variations in the account registration process, you must find the specifics on their official website.

In the case of the eNPS route, you can open an account by following these steps:

  • Click on the NPS dropdown on the homepage of the eNPS website. From that list, select NPS Vatsalya (Minors) Registration and then the ‘Register Now’ option.
  • Enter your details as the guardian and select ‘Begin Registration.’
  • An OTP will be sent to your mobile number and email. After you enter the OTP and verify it, an acknowledgment number will appear on the screen. Click on ‘Continue’.
  • Submit your details and documents, such as your PAN card, identity and address proof, and proof of the minor’s birth date.
  • Click ‘Confirm’ and contribute a minimum of ₹1,000 to generate the PRAN and open the account.

Transition After Turning 18

Once your child turns 18, the NPS Vatsalya account is automatically converted into a standard NPS Tier I (All Citizen) account. The child can then decide whether to continue or exit the scheme. Further, as the account’s responsibility will shift to the child, fresh KYC will be conducted within three months of attaining 18 years.

Returns on NPS

The NPS Vatsalya Scheme offers the benefit of market-linked returns. Thus, your expected earnings will depend on the market performance and the investment option chosen. However, the following average estimates of returns under the NPS scheme can be relevant for you:

Investment Mix Average NPS Returns as of July 19, 2024
50% equity, 30% Corporate Debt, 20% G-Sec (default mix) 11.59%
75% equity, 25% G-Sec 12.86%

Secure Your Child’s Future with NPS Vatsalya

Investing in the NPS Vatsalya Scheme proactively ensures your child enjoys financial independence and a stress-free retirement. With even a modest annual investment of ₹10,000, you can leverage the power of compounding to accumulate substantial wealth for your child over time. The NPS Vatsalya calculator clearly shows that the earlier you start, the larger the corpus you can build. You can thus secure your child’s financial future in a cost-effective and disciplined manner.

FAQs on NPS Vatsalya Calculator

1

What are the required documents for NPS Vatsalya Scheme

You need the following documents to open an NPS Vatsalya account:

  • Date of birth proof of the minor
  • Your proof of identity and address
  • Your Permanent Account Number (PAN) or Form 60 declaration (Rule 114B)
  • NRE / NRO Bank Account (solo or joint) of the minor in case you are an NRI / OCI

2

How does the NPS Vatsalya Scheme help secure my child’s future?

The NPS Vatsalya Scheme helps secure your child’s future by providing a disciplined investment approach and long-term wealth accumulation. Regular contributions to this government-backed pension scheme ensure financial security for your child’s future needs.

3

How can a ₹10,000 annual investment in NPS Vatsalya make my child a crorepati?

A ₹10,000 annual investment in NPS Vatsalya can grow to over ₹1 crore due to the power of compounding. Due to Market-Linked Investments in equities and debt, you get to enjoy higher returns.

4

What is the expected return rate for investments in the NPS Vatsalya Scheme?

The amount invested in the NPS Vatsalya Scheme is invested in a mix of equity, debt, and government securities. The return, therefore, depends on the market performance of these securities.

5

How long should I invest in NPS Vatsalya to reach a corpus of ₹1 crore?

To reach a corpus of ₹1 crore with a ₹10,000 annual investment in the NPS Vatsalya Scheme, you would need to invest for approximately 30 to 35 years, assuming an average return rate of 8% to 10%. You can find out the exact figures using the NPS Vatsalya calculator online.

6

What are the tax benefits associated with investing in the NPS Vatsalya Scheme?

Though tax benefits are available for investing in NPS under Section 80CCD(1) and Section 80CCD(1B), no such benefits have yet been declared for the NPS Vatsalya Scheme.

Suggested Readings

1. What are NPS Tier 1 and Tier 2 Accounts?

2.What is PRAN Number?
Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

Kotak e-Term

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Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**
Want to Know More?
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Ref. No. KLI/22-23/E-BB/2435

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The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.

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