Estimate your National Pension System corpus, lump-sum withdrawal and monthly pension at retirement.
Employee contribution up to 10% of salary (Basic + DA) deductible - within the overall ₹1.5L 80C limit. Reduces taxable income.
Sec 80CCD(1B) gives additional ₹50,000 deduction over and above the ₹1.5L limit. Total potential saving: ₹2L+ from NPS alone.
Employer contribution (Sec 80CCD(2)) up to 10% of salary is fully deductible - no cap in new tax regime. Government employees get 14%.
After 3 years: withdraw up to 25% for specific purposes (child education, home purchase, critical illness). Max 3 times before age 60.
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme launched by the Government of India in 2004 for government employees and extended to all Indian citizens in 2009. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), NPS offers market-linked returns through a mix of equity, government bonds, and corporate bonds. As of March 2024, NPS assets under management crossed Rs. 11 lakh crore, with over 7.4 crore subscribers across Tier I and Tier II accounts.
NPS returns depend on the subscriber's asset allocation choice across three classes: Equity (E), Corporate Bonds (C), and Government Securities (G). The Active Choice allows subscribers to allocate up to 75% in equity, while the Auto Choice adjusts the equity proportion based on age. Historical average NPS equity fund returns have ranged between 10% and 14% per annum over 10-year periods. At retirement (age 60), at least 40% of the corpus must be used to purchase an annuity, and up to 60% can be withdrawn tax-free.
NPS contributions are eligible for deductions under Section 80C (Rs. 1.5 lakh), plus an additional Rs. 50,000 under Section 80CCD(1B), making it one of the most tax-efficient retirement instruments available to Indian taxpayers. Central and state government employees, private sector workers, and self-employed professionals across India use NPS. This calculator helps estimate the final corpus, annuity income, and lump-sum withdrawal at retirement.