Calculate your National Pension System corpus and estimated monthly pension
Tax Benefits: Section 80CCD(1): Up to ₹1.5 lakh | Section 80CCD(1B): Additional ₹50,000 | Total: Up to ₹2 lakh deduction per year.
At Retirement (age 60): 60% of corpus can be withdrawn tax-free. Remaining 40% must be invested in annuity for monthly pension.
Fund Options: Auto Choice (Lifecycle Fund) or Active Choice (Equity up to 75%, Corporate Bonds, G-Sec).
Minimum Contribution: ₹500/month for Tier 1. No maximum limit.
Choose how much you can invest monthly. Even ₹2,000/month started at age 25 can build a retirement corpus of ₹1+ crore by age 60.
NPS matures at age 60. The younger you start, the larger the corpus due to the power of compounding over more years.
NPS equity funds have historically given 10-12% returns. Balanced funds give 8-10%. Conservative funds give 7-8%. Choose based on your risk appetite.
See your total retirement corpus, tax-free lump sum withdrawal (60%), and estimated monthly pension from the annuity (40%).
NPS Corpus: SIP formula applied monthly until age 60
Lump Sum: Corpus × 60% (tax-free withdrawal)
Monthly Pension: (Corpus × 40% × Annuity rate) ÷ 12
NPS (National Pension System) is a government-regulated retirement savings scheme open to all Indian citizens aged 18-70. It is ideal for salaried professionals, government employees, and self-employed individuals who want a disciplined retirement corpus with tax benefits.
NPS offers deduction under Section 80CCD(1) up to ₹1.5 lakh (within the ₹1.5L 80C limit) and an additional exclusive deduction of ₹50,000 under Section 80CCD(1B). This makes NPS the only instrument offering up to ₹2 lakh total deduction per year.
Partial withdrawal (up to 25% of own contributions) is allowed after 3 years for specific purposes: children's education/marriage, house purchase, critical illness treatment, or starting a business. Premature exit before age 60 requires 80% of corpus to be annuitized.
NPS potentially gives higher returns (8-12%) vs PPF (7.1%) but is market-linked. PPF has EEE tax status (fully tax-free) while NPS has EET (40% annuity is taxable as pension income). NPS is better for higher returns; PPF is better for guaranteed tax-free returns. Many financial planners recommend both.
At age 60: you can withdraw 60% of the corpus as tax-free lump sum. The remaining 40% must be used to purchase an annuity plan from a PFRDA-registered insurance company, which pays monthly pension. You can also defer withdrawal up to age 70.