Calculate your NPS maturity corpus, monthly pension, lump sum withdrawal, and tax benefits with our comprehensive National Pension Scheme Calculator. Plan your retirement for both Government and Private sector employees.
Calculate your NPS maturity corpus, monthly pension, lump sum withdrawal, and tax benefits. Select your employment type and adjust the parameters to see personalized projections.
Calculations are indicative and based on assumed rates of return. Actual corpus and pension depend on fund performance, inflation, annuity rates, and regulatory policies. Past performance does not guarantee future returns. Please consult with a financial advisor for personalized retirement planning.
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National Pension Scheme (NPS) is a government-sponsored voluntary retirement savings scheme designed to provide financial security to Indian citizens during their post-retirement years. Launched in 2004 for government employees and opened to all citizens in 2009, NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the Ministry of Finance.
NPS operates on a defined contribution basis, where subscribers regularly contribute towards their retirement corpus. These contributions are invested in diversified portfolios comprising equity, corporate bonds, and government securities. The scheme allows flexibility in contribution amounts, investment choices, and pension fund managers.
At retirement (between ages 60-75), subscribers can withdraw up to 60% of the accumulated corpus as a lump sum (tax-free), while the remaining 40% must be used to purchase an annuity plan that provides regular monthly pension. NPS offers significant tax benefits under sections 80CCD(1), 80CCD(1B), and 80CCD(2), making it one of the most tax-efficient retirement investment options.
Additional ₹50,000 tax deduction under Section 80CCD(1B) over and above ₹1.5 lakh under Section 80C. Employer contribution up to 14% is also tax-free.
NPS invests in equity, corporate bonds, and government securities, providing potential for higher returns (8-12% historically) compared to traditional pension schemes.
Single PRAN valid across jobs, cities, and countries. Change contribution amounts, investment choices, and fund managers as per your needs.
Fund management charges are just 0.01% to 0.25% annually. No entry or exit loads. Minimal account maintenance charges.
Regulated by PFRDA under Government of India. Complete transparency with online account access and real-time tracking.
Available to all Indian citizens aged 18-70, including NRIs and OCIs. Both salaried and self-employed can invest.
NPS offers one of the most tax-efficient investment structures:
Tax deduction up to 10% of salary (Basic + DA) for salaried employees or 20% of gross income for self-employed. Falls within the overall ₹1.5 lakh limit under Section 80C.
Exclusive additional deduction of ₹50,000 per year for NPS Tier 1 account. Over and above the ₹1.5 lakh limit, allowing total deduction up to ₹2 lakh. Tax saving in 30% bracket: ₹15,600/year.
Employer contribution up to 10% of salary (14% for central government employees) is fully tax-deductible with no upper limit.
60% lump sum withdrawal at retirement is completely tax-exempt. Only the annuity income (from remaining 40%) is taxable as per income slab.
National Pension Scheme (NPS) is a voluntary, long-term retirement savings scheme launched by the Government of India to provide pension to citizens. It is regulated by PFRDA (Pension Fund Regulatory and Development Authority). NPS allows systematic savings during employment and provides lump sum withdrawal with regular pension after retirement through annuity purchase.
NPS corpus is calculated using monthly compounding of your contributions (employee + employer) with annual increases. The formula considers: monthly contribution amount, employer contribution (if applicable), expected annual return (typically 8-12%), contribution increase percentage per year, and investment duration till retirement. The corpus grows through compound interest on accumulated investments.
Minimum contribution: ₹1,000 per year (₹500 for Tier II). There is no upper limit for NPS contributions. However, tax benefits under Section 80CCD(1) are limited to 10% of salary (14% for government employees), and an additional ₹50,000 deduction is available under Section 80CCD(1B).
At maturity (age 60-75): Minimum 40% of corpus must be used to purchase annuity (for regular pension). Up to 60% can be withdrawn as lump sum (tax-free). If corpus is ≤ ₹5 lakh, 100% lump sum withdrawal is allowed. Partial withdrawal (up to 25% of contributions) is allowed after 3 years for specific purposes like medical treatment, higher education, or home purchase.
Annuity rate is the percentage return paid annually by the annuity provider on your invested corpus. Current annuity rates range from 5-7% depending on the annuity option chosen (life annuity, joint life, return of purchase price, etc.). The annuity corpus must be at least 40% of your total NPS corpus, which is used to purchase an annuity plan from PFRDA-empanelled insurance companies.
Section 80CCD(1): Deduction up to 10% of salary (14% for central govt employees) within ₹1.5 lakh limit under Section 80C. Section 80CCD(1B): Additional deduction of ₹50,000 exclusively for NPS. Section 80CCD(2): Employer contribution up to 10% of salary (14% for govt) is tax-free. At maturity: 60% lump sum withdrawal is tax-exempt. Only annuity income is taxable.
Tier 1: Primary retirement account with tax benefits and withdrawal restrictions. Mandatory 40% annuity purchase at maturity. Minimum ₹1,000/year contribution required. Tier 2: Voluntary savings account like a mutual fund. No tax benefits (except for govt employees). Complete withdrawal flexibility anytime. Can be opened only if you have Tier 1 account.
All Indian citizens aged 18-70 years are eligible. NRIs and OCIs are also eligible. Government employees are auto-enrolled. Private sector employees and self-employed can voluntarily join. Both Tier 1 and Tier 2 accounts can be opened. Aadhaar and PAN are mandatory for account opening.
NPS returns depend on the investment choice and market performance. Historical returns: Equity (E) scheme: 10-14% per annum. Corporate Bond (C) scheme: 8-10% per annum. Government Securities (G) scheme: 8-9% per annum. Alternative Investment (A) scheme: Variable. Actual returns vary based on fund manager performance and market conditions. Past performance doesn't guarantee future returns.
Yes, you can change your contribution amount anytime. For salaried employees with employer contributions, changes need to be informed to the employer. For individual subscribers, you can modify contribution amount and frequency (monthly/quarterly/annually) at any time through online or offline mode. There's no penalty for changing contribution amounts.