NPS Calculator – National Pension Scheme Pension
Estimate your retirement lump sum and monthly pension under the National Pension Scheme. Calculate extra Sec 80CCD(1B) benefits.
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National Pension Scheme (NPS) Retirement Compounding
The National Pension System is a voluntary, market-linked retirement scheme regulated by the PFRDA. It offers a mix of equity, corporate debt, and government bonds. At age 60, you can withdraw up to 60% of the corpus tax-free, while the remaining 40% must buy an annuity plan to provide a monthly pension.
NPS is highly popular due to its exclusive tax benefit: you can claim an additional deduction of up to ₹50,000 under Section 80CCD(1B), over and above the Section 80C limit of ₹1.5 Lakhs.
Frequently Asked Questions (FAQ)
1. What are Tier I and Tier II accounts in NPS?
Tier I is the primary retirement account with restricted withdrawals and tax benefits. Tier II is a voluntary investment account with no lock-in and no tax deductions.
2. Can I choose how my NPS money is allocated?
Yes, you can select "Active Choice" to decide your asset mix (up to 75% in equity) or select "Auto Choice" where allocation is adjusted based on your age.