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NPS calculator
Estimate what the National Pension System builds by retirement, how much you can take as a lump sum, and the pension the rest buys.
Reading the result
₹10,000 a month from age 30 to 60 at 10% builds about ₹2.28 crore. With 20% used for an annuity at 6%, you take about ₹1.82 crore as a lump sum and receive a pension of about ₹22,800 a month. Returns are market-linked and not guaranteed.
Exit rules for non-government subscribers
- At exit, at least 20% of the corpus must buy an annuity when it exceeds ₹12 lakh; up to 80% can be withdrawn.
- A corpus of ₹8 lakh or less can be withdrawn in full. Between ₹8 lakh and ₹12 lakh, special options apply.
- The lump sum withdrawn at retirement is tax-free; the pension is taxed as income.
Tax benefits
Employer contributions up to 14% of basic plus DA are deductible under the new regime. Under the old regime you also get up to ₹50,000 under Section 80CCD(1B) on top of 80C.
NPS or mutual funds for retirement?
NPS is cheap and locks money until retirement, which helps discipline, but forces part into an annuity. Mutual funds are flexible but easy to dip into. Many people use both.