Calculate your National Pension System (NPS) corpus and pension amount at retirement.
₹4,200,000
₹34,082,767
₹38,282,767
At retirement age (60), Indian regulations mandate a maximum of 60% lumpsum withdrawal tax-free. The remaining minimum 40% must be converted into a registered annuity pension provider.
NPS returns are not fixed like PPF. Contributions are allocated between Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Assets (A). Active choice allows up to 75% Equity exposure.
Over 20-30 years, an equity-oriented allocation is highly likely to outperform traditional retirement products by 3-4% per annum. Rebalancing keeps the portfolio optimized as you age.
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The National Pension System (NPS) is a government-sponsored pension scheme. It is market-linked and has delivered superior returns compared to traditional instruments like PPF over the long term.
Upon retirement (age 60), you can withdraw up to 60% of the corpus as a lumpsum. The remaining 40% must be used to purchase an annuity (pension plan) which provides a monthly income.
Enter your current age, retirement age, monthly contribution, expected return before retirement, annuity percentage, and expected annuity return. The calculator estimates your retirement corpus, lump sum withdrawal, annuity purchase amount, and expected monthly pension.
NPS is not a fixed-return product. Your actual corpus depends on asset allocation, fund manager performance, equity/debt mix, contribution discipline, and market returns over decades.
The accumulation phase works like a monthly investment compounding over time:
Future Corpus = Monthly Contribution compounded monthly until retirement
The pension phase depends on how much of the corpus is used to buy an annuity:
Annuity Amount = Retirement Corpus x Annuity Allocation %
Estimated yearly pension can be approximated as:
Annual Pension = Annuity Amount x Expected Annuity Rate
Monthly pension is annual pension divided by 12.
| Feature | NPS Tier 1 | NPS Tier 2 |
|---|---|---|
| Purpose | Retirement account | Voluntary investment account |
| Lock-in | Until retirement, with rules | More flexible |
| Tax benefits | Available under specified sections | Limited/specific cases |
| Withdrawal | Restricted | Flexible |
| Best for | Retirement planning | Additional market-linked savings |
Most investors use Tier 1 for retirement and tax planning. Tier 2 is optional and should be compared with mutual funds before investing.
NPS lets you allocate money across equity, corporate bonds, government securities, and alternative assets within permitted limits. Younger investors may choose a higher equity allocation for long-term growth, while investors near retirement may prefer a more conservative mix.
The right allocation depends on age, risk tolerance, retirement timeline, existing EPF/PPF exposure, and whether you already invest in equity mutual funds.
No. NPS is market-linked. Returns vary based on your chosen asset allocation and pension fund performance.
NPS can be useful for disciplined retirement investing, especially because of tax benefits and low-cost structure.
Under current rules, only a portion can be withdrawn as lump sum. A minimum portion must be used to purchase an annuity.
NPS has market-linked growth potential, while PPF offers stable tax-free returns. Many investors use both for different parts of retirement planning.
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