NPS Calculator India — Retirement Corpus & Monthly Pension 2026

NPS (National Pension System) is a defined-contribution pension scheme regulated by PFRDA under the PFRDA Act, 2013. Open to all Indian citizens aged 18–70, it allows market-linked investments across equity, corporate bonds, and government securities. Following PFRDA's December 2025 amendments, non-government subscribers can withdraw up to 80% of their corpus as a lump sum at retirement, with only 20% mandatory annuity. Government employees retain the 60% lump sum / 40% annuity structure.

Section 80CCD(1B) allows an additional deduction of up to ₹50,000 for NPS contributions, over and above the ₹1.5 lakh limit of Section 80C. This is exclusive to NPS — no other investment qualifies for this extra ₹50,000 deduction. For a 30% tax bracket individual, this saves up to ₹15,600 in taxes annually.

NPS returns depend on the asset allocation chosen. The equity component (Tier I, LC75 Aggressive Fund) has historically returned 10–12% annually over 10-year periods. The mixed fund with bonds and government securities returns 8–10%. NPS does not guarantee returns — they are market-linked.

Your NPS pension depends on: (1) the total corpus you accumulate by retirement; (2) how much of that corpus goes to annuity — a minimum of 20% for non-government subscribers and 40% for government employees under PFRDA's December 2025 rules; (3) the annuity rate at the time of purchase, which typically ranges from 5–7% annually. As an example: a ₹50 lakh annuity corpus at 6% generates approximately ₹25,000/month. Use the calculator above to model your own numbers based on your contribution and timeline.

NPS offers higher potential returns (market-linked, up to 12%+ from equity) and an exclusive additional ₹50,000 tax deduction. PPF offers guaranteed, tax-free returns (7.1%) with full liquidity at maturity. For retirement planning under 30, NPS's equity upside is worth considering. For risk-averse investors, PPF is safer.

Yes. EPF and NPS are complementary retirement savings tools. EPF contributions are mandatory for most salaried employees. NPS is voluntary and provides an additional tax deduction under 80CCD(1B) not available through EPF. Most financial planners recommend both.

NPS Tier I is the primary retirement account — contributions are tax-deductible, withdrawals are restricted until age 60, and at least 20% of the corpus (40% for government employees) must be used to buy an annuity at exit. NPS Tier II is a voluntary savings account with no tax deduction on contributions (except for central government employees), no lock-in, and no mandatory annuity — you can withdraw the full amount at any time. Tier I is where the tax benefits and retirement structure apply; Tier II is optional and works more like a flexible mutual fund. Use this calculator to model your Tier I retirement corpus.

Partly. The ₹50,000 additional deduction under Section 80CCD(1B) is available only under the old tax regime — it cannot be claimed if you opt for the new regime. Your own contributions under Section 80CCD(1) are also not deductible in the new regime. However, employer NPS contributions under Section 80CCD(2) are deductible even in the new tax regime — up to 14% of basic salary for both government and non-government employees as of FY 2025–26. If your employer offers NPS contributions, the new regime still gives you this benefit.

Premature exit from NPS Tier I (before age 60 and before completing 15 years) requires a minimum 80% of the corpus to be used for annuity purchase — only 20% can be withdrawn as a lump sum. If the total corpus is ₹5 lakh or less, 100% can be withdrawn. Partial withdrawals of up to 25% of your own contributions are allowed after 3 years for specific reasons — medical emergencies, children's education, home purchase, or skill development. Full premature exit is significantly less favourable than waiting until 60; use this calculator to see the corpus difference.

If an NPS subscriber dies before age 60, the entire accumulated corpus is paid to the registered nominee or legal heir as a lump sum — there is no mandatory annuity purchase requirement. The nominee receives 100% of the corpus, and the amount is fully tax-free in their hands. This is why registering a nominee in your NPS account is essential — without a nominee, the corpus goes through a legal heir claim process that can take significantly longer. You can nominate up to three nominees with different percentage allocations.

As of March 2025, for Tier I Scheme E (Equity), HDFC Pension Fund reported a 5-year return of approximately 23.56%, while Kotak Mahindra Pension (20.24%), ICICI Prudential Pension (20.16%), and UTI Pension (20.05%) outperformed the 5-year benchmark of 19.76%. Over longer periods (15+ years), ICICI Prudential, UTI Pension, and SBI Pension have compounded at 11–13% annually. Past returns do not guarantee future performance, and PFRDA allows you to switch fund managers once per year at no cost. Check PFRDA's weekly NAV data on the NPS Trust website for the latest figures.

EPF (Employees' Provident Fund) is mandatory for salaried employees earning under ₹15,000/month (basic), offers a guaranteed return set by the EPFO board (8.25% for FY 2023–24), and allows 100% tax-free withdrawal after 5 years of continuous service. NPS is voluntary (for most), offers market-linked returns that have historically ranged from 10–13% for equity-heavy funds, but mandates that 20–40% of the corpus go to an annuity at exit — earning a lower guaranteed rate of 5–7%. Both qualify for Section 80C deductions up to ₹1.5 lakh, but only NPS gives the additional ₹50,000 under Section 80CCD(1B) in the old tax regime. For retirement planning, most financial planners treat EPF and NPS as complementary, not competing options.