NPS Pension Calculator
Plan your retirement under the National Pension System. Calculate your lumpsum maturity and monthly pension income.
Total Corpus at Maturity
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60% Lumpsum Withdrawal
₹ 0
Estimated Monthly Pension
₹ 0
NPS Highlights
- Regulated by PFRDA.
- Market-linked returns (Higher than EPF/PPF usually).
- Additional tax deduction of ₹50,000 under 80CCD(1B).
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What is the National Pension System (NPS)?
The NPS is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It is a mix of equity, corporate bonds, and government securities. For Central Government employees, it is mandatory to contribute 10% of Basic+DA, with a matching 14% from the government.
Withdrawal Rules at 60
Once you reach the age of 60, you can withdraw up to 60% of the corpus as a tax-free lumpsum. The remaining 40% must be used to purchase an annuity, which provides you with a regular monthly pension for life.
Benefits of Investing in NPS
The National Pension System is one of India's most tax-efficient retirement products. It offers market-linked growth through diversified investments in equity, corporate debt, and government securities.
Investors benefit from disciplined retirement savings, professional fund management, portability across employers, and additional tax deductions under Section 80CCD(1B). These features make NPS a popular retirement planning option for salaried employees, government workers, and self-employed individuals.
Frequently Asked Questions (FAQ)
1. Can I withdraw NPS money before 60?
Partial withdrawals (up to 25% of your contribution) are allowed after 3 years for specific reasons like education, marriage, or home purchase. Complete exit before 60 is allowed, but 80% must be used for annuity.
2. How much tax can I save with NPS?
You get deduction up to ₹1.5 Lakh under 80C. Over and above this, you get an exclusive deduction of ₹50,000 under Section 80CCD(1B), making it a total of ₹2 Lakhs.
3. What are Tier-I and Tier-II accounts?
Tier-I is the primary retirement account with tax benefits but withdrawal restrictions. Tier-II is a voluntary savings account with no tax benefits but allows anytime withdrawal.
4. Is NPS better than PPF?
NPS offers market-linked returns and pension benefits, while PPF provides fixed government-backed returns. Many investors use both products together for retirement planning.
5. Can I change my NPS fund manager?
Yes. NPS subscribers can change their pension fund manager and investment allocation according to PFRDA guidelines.