What makes this calculator different
We split the projected corpus into the 60% lump-sum + 40% annuity purchase and estimate the monthly pension at an assumed 6% annuity rate. Actual annuity rates vary by insurer and option, so treat the pension figure as indicative.
Common Questions
NPS Calculator FAQs
Common questions about the NPS Calculator and how to read its results.
Q01
What is NPS and who can subscribe?
NPS (National Pension System) is a PFRDA-regulated retirement scheme. Any Indian citizen aged 18–70 can open Tier I (compulsory, lock-in until 60) and Tier II (voluntary, withdrawable). Salaried employees often access via employer-route (corporate NPS).
Q02
What returns should I expect on NPS?
Historical NPS Tier I returns: equity (E) fund 10–12%, corporate bonds (C) 8–9%, government bonds (G) 7–8%. Lifecycle (LC) funds auto-shift equity:debt ratio with age. Enter a blended return rate that matches your fund mix.
Q03
What are NPS tax benefits in the new vs old tax regime?
Old regime: 80CCD(1) up to Rs 1.5L (within 80C cap) + 80CCD(1B) Rs 50K extra + 80CCD(2) employer contribution up to 10% of salary. New regime: only 80CCD(2) (employer) remains as a deduction.
Q04
How is the NPS pension calculated?
At retirement (60), 60% of the corpus is lump-sum (tax-free) and 40% mandatorily buys an annuity from a PFRDA-empanelled insurer. Annuity rates are roughly 6%–7% (lifetime). The calculator projects the lumpsum and an indicative monthly pension at an assumed 6% annuity rate.
Q05
Can I withdraw NPS before 60?
Partial withdrawal up to 25% of own contribution allowed for specified reasons (children's education, marriage, home purchase, medical) after 3 years. Full premature exit allowed at any age but 80% must buy an annuity.
Q06
Is the NPS annuity taxable?
Yes — the monthly pension payout is taxable at your slab rate as 'income from other sources'. The 60% lumpsum withdrawal at 60 is tax-free.
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