NPS Calculator

The National Pension System (NPS) is a government-backed, voluntary retirement savings scheme regulated by PFRDA. It offers market-linked returns through a mix of equity, corporate bonds, and government securities — typically generating 8–12% CAGR over long periods, significantly higher than EPF or PPF.

At retirement (age 60), at least 40% of the corpus must be used to purchase an annuity (monthly pension). The remaining 60% can be withdrawn as a lump sum — completely tax-free. This calculator models your NPS journey from today to retirement.

1. Tier-I (mandatory): Locked until age 60 (partial withdrawal allowed after 3 years for specific reasons). This is where the retirement corpus builds.
2. Contribution: Minimum ₹500/month or ₹1,000/year. No maximum — you can contribute as much as you want.
3. At maturity (age 60): 40% minimum must buy an annuity plan; up to 60% can be withdrawn tax-free as lump sum.
4. Annuity: Purchased from PFRDA-empanelled insurance companies. Current annuity rates: ~5.5%–7% p.a. depending on type (with/without return of corpus, spouse cover).
5. Tax benefits: 80CCD(1): up to ₹1.5L (within 80C limit); 80CCD(1B): additional ₹50,000 deduction (exclusive to NPS); 80CCD(2): employer contribution — tax-free under new regime too.