🏦 Retirement Planning

NPS Calculator

NPS कैलकुलेटर — राष्ट्रीय पेंशन योजना

Calculate National Pension Scheme maturity corpus, monthly pension and tax savings. 40% annuity + 60% lumpsum split. For Tier I contributions.

💰 Your NPS Inputs

Based on asset mix: 10–12% equity-heavy, 8–9% conservative. Historical averages.
Minimum 40% is compulsory. Higher = higher pension but lower lump sum.
Corpus at Age 60
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from ₹0 invested
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Lump sum (tax-free)
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Annuity pool
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Monthly pension
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Total invested

📊 Projection

How NPS Works

The National Pension Scheme is a voluntary retirement savings system regulated by PFRDA. You contribute monthly to a Tier I account; money is invested across Equity (E), Corporate bonds (C) and Government bonds (G) based on your asset allocation choice. The corpus grows tax-free until age 60.

At age 60, the rules mandate a 60:40 split — you can take up to 60% as a tax-free lump sum, and at least 40% must buy an annuity that pays you monthly pension for life. You can voluntarily annuitize up to 100%.

Tax Benefits — Triple Deduction

Under the New Tax Regime (default from FY 2023-24), only 80CCD(2) — employer contribution — is deductible. 80CCD(1) and 80CCD(1B) are only available in the Old Regime.

Asset Allocation Options

Historically, LC75 has delivered around 10–12% CAGR over 10+ year periods. LC25 tracks around 8–9%. Past returns are not guaranteed.

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❓ Frequently Asked Questions
What return rate should I use?›
NPS returns depend on your asset allocation. Historical long-term averages (PFRDA data): Equity (E): 10–12%, Corporate Bonds (C): 8–9%, Government Bonds (G): 7–8%. A balanced 50:30:20 allocation typically delivers 9–10%. Past returns don't guarantee future ones.
Why is 40% of corpus locked in annuity?›
At age 60, NPS rules force at least 40% of corpus to be used for annuity purchase, which gives you monthly pension for life. The remaining 60% can be withdrawn as tax-free lump sum. You can choose to annuitize up to 100%.
What annuity rate is realistic?›
Current annuity rates from insurers like LIC, SBI Life, HDFC Life are around 6–7% for life annuity. If you pick an option that returns principal to nominee, rates drop to ~5.5%. Higher age = higher rate.
How much tax do I save with NPS?›
NPS gives triple tax benefit: (1) 80CCD(1): own contribution up to 10% of salary, within ₹1.5L 80C cap; (2) 80CCD(1B): additional ₹50,000 exclusive deduction; (3) 80CCD(2): employer contribution up to 10% of basic (14% for govt), over and above ₹1.5L. New Regime only allows 80CCD(2).
Is the lump sum withdrawal taxed?›
No. As per current rules (FY 2024-25), the lump sum withdrawal up to 60% at age 60 is fully tax-free. The annuity portion's monthly pension is taxed as regular income at your slab rate.
What happens if I exit before 60?›
Early exit before 60 requires at least 80% of corpus to go into annuity and only 20% as lump sum. There are limited partial withdrawal options (education, marriage, illness) up to 25% of own contribution after 3 years.