NPS Calculator

Estimate your retirement pension corpus and monthly annuity payout under the Indian National Pension System (NPS).

10,000
30 Years
40%
Total Pension Corpus

2,27,93,253

Lumpsum (Tax-Free)

1,36,75,952

60% withdrawn at age 60
Est. Monthly Pension

45,587

Paid monthly post age 60

NPS Retirement Corpus Build Projections

Frequently Asked Questions

What is the maximum lump-sum withdrawal allowed in NPS at age 60?

Upon reaching age 60, you can withdraw up to 60% of the corpus tax-free. The remaining minimum 40% must be reinvested into annuity plans to generate a regular monthly pension.

Are NPS contributions tax deductible?

Yes, NPS offers excellent tax benefits. You can claim deduction up to ₹1,50,000 under Section 80C, plus an exclusive deduction of ₹50,000 under Section 80CCD(1B), making it a highly tax-efficient retirement tool.

NPS: The Retirement Plan That Gives You an Extra Tax Deduction Most People Miss

Most people know NPS (National Pension System) as the government employee retirement scheme. What many private sector employees don't know is that NPS offers a unique additional tax deduction that stacks on top of your regular 80C limit — and most Indians are leaving it on the table.

Section 80CCD(1B) allows an additional ₹50,000 deduction for NPS contributions, over and above the ₹1.5 lakh 80C limit. For someone in the 30% tax bracket, this saves ₹15,600 per year (₹50,000 × 31.2%). Over 20 years of tax savings invested back into NPS, that ₹15,600/year itself compounds into a significant corpus.

NPS also offers equity exposure (up to 75% in the E tier under Auto/Active choice), which helps it outperform traditional pension plans significantly over long horizons. On maturity at age 60, 60% of the corpus can be withdrawn tax-free as a lump sum; the remaining 40% is compulsorily annuitised.

The main limitation is the mandatory annuity requirement and the illiquidity. NPS is a long-term, disciplined retirement vehicle — not a flexible savings account. Best used in combination with equity mutual funds for your non-retirement wealth goals.

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