Estimate your retirement wealth, lump-sum payout, and monthly annuity pension with the National Pension System (NPS).
Investment Details
Withdrawal Settings
Min 40% is mandatory for annuity.
Estimated monthly income post-retirement
Withdrawal Split
Wealth Growth
Retirement Summary
| Component | Amount |
|---|---|
| Total Invested Amount | ₹21,00,000 |
| Total Interest Earned | +₹1,70,41,384 |
| Total Corpus Generated | ₹1,91,41,384 |
| Lump Sum Withdrawal (60%) | ₹1,14,84,830 |
| Annuity Reinvestment (40%) | ₹76,56,554 |
Understanding the National Pension System (NPS)
The National Pension System (NPS) is a voluntary, market-linked retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority). It enables subscribers to build a substantial retirement corpus with low-cost asset management across Equity (E), Corporate Debt (C), and Government Securities (G).
Tripple Tax Benefit
Enjoy EEE status: Tax deductions on contribution (80CCD), tax-exempt compounding, and 60% tax-free lump-sum withdrawal.
Compounding Advantage
Low fund management fees (under 0.09%) ensure maximum returns stay invested and compound toward your retirement corpus.
Lifelong Annuity
40% minimum annuity reinvestment guarantees a predictable monthly pension for life starting from retirement at age 60.
NPS Tier 1 vs Tier 2 Account: Key Differences
Compare features, tax implications, and liquidity options between NPS Tier 1 and Tier 2 accounts:
| Feature | NPS Tier 1 (Retirement Account) | NPS Tier 2 (Investment Account) |
|---|---|---|
| Account Type | Mandatory base account to enroll in NPS | Optional add-on savings account |
| Lock-in Period | Locked until age 60 (conditional partial withdrawal allowed) | Zero lock-in (withdraw anytime) |
| Tax Deductions | Eligible for ₹1.5L (80CCD(1)) + ₹50k (80CCD(1B)) | No tax deduction (taxable per income slab) |
| Minimum Annual Contribution | ₹1,000 per financial year | No minimum annual requirement |
| Maturity / Withdrawal | 60% Tax-free lump sum, 40% mandatory Annuity pension | 100% lump sum withdrawal anytime |
NPS Tax Benefits Breakdown (Section 80CCD)
NPS provides multiple deductions under the Income Tax Act for salaried professionals, self-employed individuals, and corporate employees:
| Tax Section | Applicable To | Max Deduction Limit | Tax Regime Eligibility |
|---|---|---|---|
| Section 80CCD(1) | Employee & Self-employed | Up to 10% of salary (20% for self-employed) within ₹1.5 Lakh 80C cap | Old Tax Regime |
| Section 80CCD(1B) | All Individual Subscribers | ₹50,000 (Exclusive above 80C) | Old Tax Regime |
| Section 80CCD(2) | Corporate / Govt Employees (Employer Share) | Up to 10% of Basic + DA (14% for Central/State Govt) | Both Old & New Tax Regimes |