NPS Rules (2026)
- •At age 60, you can withdraw up to 60% tax-free; minimum 40% must buy an annuity.
- •Extra tax deduction: up to ₹50,000 under Section 80CCD(1B), over the 80C limit.
- •Open to Indian citizens aged 18-70; partial withdrawals allowed for specific needs.
- •The annuity portion provides your monthly pension after retirement.
The Real Problem This Solves
People assume their EPF alone will fund retirement, then discover at 60 it covers barely a fraction of their expenses.
NPS adds a low-cost, market-linked layer, but only if you start early enough. This calculator shows your corpus and monthly pension.
How Your Retirement Corpus Builds
Your monthly contributions compound until age 60. At retirement, part is taken as a tax-free lump sum and part buys an annuity that pays a monthly pension.
Example: Priya, aged 30, contributes ₹5,000/month at an assumed 10% return until 60. Her corpus grows to about ₹1.13 crore. If she uses 40% to buy an annuity at 6%, she gets roughly ₹22,600/month pension plus a ₹68 lakh tax-free lump sum.
| Monthly Contribution | Start Age | Corpus at 60 | Est. Pension/mo |
|---|---|---|---|
| ₹5,000 | 30 | ~₹1.13 crore | ~₹22,600 |
| ₹5,000 | 40 | ~₹45 lakh | ~₹9,000 |
| ₹10,000 | 30 | ~₹2.26 crore | ~₹45,200 |
Frequently Asked Questions
How much of my NPS can I withdraw at 60?
Up to 60% as a tax-free lump sum. The remaining 40% (minimum) must be used to buy an annuity that pays your monthly pension.
What extra tax benefit does NPS give?
An additional deduction of up to ₹50,000 under Section 80CCD(1B), separate from and over the ₹1.5 lakh Section 80C limit.
Related Calculators
Mapped your retirement corpus?
NPS is one pillar. Equity SIPs are another. See how a parallel mutual fund SIP boosts your retirement with our SIP Calculator.
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