The National Pension System (NPS) is a government-regulated, market-linked retirement savings scheme managed by PFRDA. At retirement (age 60), 60% of the corpus can be withdrawn as a tax-free lump sum under Section 10(12A). The remaining corpus must be used to purchase an annuity for a lifelong mont...
Min ₹500/month for Tier I
Typical: 5–7% p.a.
RETIREMENT CORPUS
₹1.14 Cr
Pension: ₹22,793/mo · Lump sum: ₹68.38 L
RETIREMENT CORPUS
₹1.14 Cr
MONTHLY PENSION
₹22,793
TAX-FREE LUMP SUM
₹68.38 L
TOTAL RETURNS
₹95.97 L
LUMP SUM (60%)
₹68.38 L
Tax-free u/s 10(12A)
ANNUITY (40%)
₹45.59 L
→ ₹22,793.25/mo pension
CORPUS GROWTH
⚡ Inflation reality: ₹22,793/mo pension = ₹3,969/mo in today's money
At 6% inflation over 30 years. Plan for a higher pension.
✓ 80CCD(1B) saves ₹15,000/yr · Total tax saved: ₹9.90 L
PFRDA rules · Dec 2025 · Old tax regime benefits
Enter your current age, retirement age (default 60), and monthly NPS contribution. The calculator projects your corpus from today until retirement.
Set your expected annual return. Use 10–12% for a moderate equity-heavy portfolio (Scheme E has historically delivered 11–14% CAGR). Use 8–9% for a balanced auto-choice portfolio.
Set the annuity percentage (minimum 40% for government, 20% for non-government per PFRDA Dec 2025 rules) and expected annuity rate (typically 5–7% from insurance companies). The calculator shows your estimated monthly pension.
Enter your annual salary and tax slab to see total tax savings — including the exclusive Rs 50,000 deduction under Section 80CCD(1B) available only to NPS subscribers.
Ravi (age 30) invests Rs 5,000/month in NPS at an expected 10% annual return until retirement at 60 (30 years). Corpus at 60: Rs 1.14 Cr. Lump sum (60%, tax-free): Rs 68.38L. Annuity corpus (40%): Rs 45.59L. Monthly pension at 6% annuity rate: Rs 22,793/month. Total invested: Rs 18L. Returns generated: Rs 95.97L — 5.3x the investment. Real value of Rs 22,793 pension after 30 years of 6% inflation: approximately Rs 3,970 in today's rupees.
| PARAMETER | GOVT EMPLOYEES | NON-GOVT |
|---|---|---|
| Min annuity at exit | 40% | 20% (Dec 2025) |
| Max lump sum | 60% | 80% |
| Tax-free lump sum | 60% u/s 10(12A) | 60% u/s 10(12A) |
| Corpus ≤ ₹5L | 100% lump sum | 100% lump sum |
| Max deferment age | 85 years | 85 years |
| 80CCD(1B) extra deduction | ₹50,000/yr | ₹50,000/yr |
| Annuity income tax | Taxable (slab) | Taxable (slab) |
| Equity ceiling | 75% (Active) | 75% (Active) |
Source: PFRDA Dec 2025 amendments · Old tax regime benefits · Always verify current rules at npstrust.org.in
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PFRDA Dec 2025 rules · Formula: Corpus = P×((1+r/12)^n−1)/(r/12)×(1+r/12) · Monthly pension = Annuity corpus × rate / 12 · 60% lump sum tax-free u/s 10(12A) · Annuity income taxable at slab rate · Indicative projections only · NPS investments subject to market risk · Last updated: 25 April 2026 · Eagle-eyed accuracy for every calculation.