👵 Retirement Planning

NPS Pension Calculator

Calculate total retirement corpus at age 60, 60% tax-free lump sum exit, and expected monthly pension.

NPS Inputs

Monthly NPS Contribution

₹

Current Age

Yrs

Expected Annual Return (%)

Retirement Breakdown at Age 60

Total Accumulation Corpus

₹0

60% Tax-Free Lump Sum₹0

Estimated Monthly Pension (40% Annuity)₹0

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How the National Pension System (NPS) Works in India

The National Pension System (NPS) is a government-sponsored voluntary retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It allows subscribers to invest regularly across equity (E), corporate debt (C), and government securities (G) to accumulate a pension corpus for retirement.

1. Maturity and Exit Rules at Age 60

60% Tax-Free Lump Sum: Upon attaining age 60, up to 60% of the accumulated corpus can be withdrawn completely tax-free under Section 10(12A).
40% Mandatory Annuity: A minimum of 40% of the corpus must be used to purchase an annuity from an approved annuity service provider (ASP) to generate a monthly pension.

Regulatory Notice: NPS regulations are governed by the PFRDA. Review our Calculation Methodology and General Disclaimer.

Frequently Asked Questions

Q1: How is the 60% lump sum exit taxed at age 60 under NPS?

Under Section 10(12A) of the Income Tax Act, the 60% lump sum withdrawal from the accumulated NPS Tier-1 corpus upon reaching age 60 is 100% tax-free.

Q2: What happens to the remaining 40% NPS corpus at retirement?

The mandatory minimum 40% of your accumulated corpus is utilized to purchase an annuity plan from a PFRDA-approved life insurance company, which generates your regular monthly pension throughout retirement.

Q3: What extra tax deduction is available for NPS under Section 80CCD(1B)?

Under the Old Tax Regime, an exclusive additional tax deduction of up to ₹50,000 is available under Section 80CCD(1B), over and above the ₹1.5 Lakh limit under Section 80C.