NPS Calculator
Plan your retirement corpus and pension under the National Pension System.
Retirement Corpus (Age 60)
The National Pension System (NPS) is India's most powerful tool for retirement planning. Regulated by the PFRDA, it moves away from the old 'defined benefit' pension model to a 'defined contribution' model. It allows you to build a market-linked retirement corpus that beats inflation over the long term.
💰 The ₹50,000 Tax Secret
NPS is the only instrument that offers tax deduction under Section 80CCD(1B).
This allows you to claim ₹50,000 over and above the standard ₹1.5 Lakh limit of Section 80C. If you are in the 30% tax bracket, this alone saves you a flat ₹15,600 in taxes every year.
Exit & Withdrawal: The 60-40 Rule
NPS matures when you turn 60. You cannot withdraw the entire amount and walk away. Here is the rule:
- 60% Lump Sum: You can withdraw up to 60% of the accumulated corpus. This amount is completely Tax-Free.
- 40% Annuity: You MUST use at least 40% of the corpus to purchase an "Annuity" (Pension Plan) from an insurance provider. This ensures you get a monthly pension for life.
Frequently Asked Questions
What is Tier 1 vs Tier 2?
<strong>Tier 1:</strong> The mandatory retirement account with tax benefits and lock-in.<br/><strong>Tier 2:</strong> A voluntary savings account with no tax benefits and no lock-in (you can withdraw anytime).
Are NPS returns guaranteed?
No. Returns depend on market performance. However, historical data suggests 9-10% returns for conservative portfolios and 12%+ for equity-heavy portfolios.