NPS Calculator: Build Your Retirement Pension

The National Pension System builds a retirement corpus with an extra tax break. This calculator projects your corpus and pension.

What is it?

NPS is a market-linked retirement scheme. At 60 you withdraw part as a lump sum and use the rest to buy an annuity for monthly pension.

How is it calculated?

Contributions compound at the assumed return to age 60; the corpus is then split between a lump sum and an annuity that pays pension.

Example

₹5,000 a month from age 30 to 60 at 10% can build a corpus of roughly ₹1.1 crore, part of which funds a monthly pension.

Key things to know

• Extra ₹50,000 deduction under 80CCD(1B), over and above 80C.
• Choose your equity-debt mix by risk appetite.
• At least 40% of the corpus must buy an annuity.
• Low cost compared with many retirement products.

What to do next

Open an NPS account online via the CRA or your bank.

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Frequently asked questions

What’s the extra tax benefit?
Up to ₹50,000 under 80CCD(1B), beyond 80C.

When can I withdraw?
Generally at age 60, with partial early withdrawals allowed.

Is the pension taxable?
Annuity income is taxed at your slab.

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.