NPS Calculator
National Pension System - Plan Your Retirement
NPS Calculator
National Pension System - Plan Your Retirement
Mandatory retirement account, locked until 60
years
years
₹
%
Popular Fund Managers:
Common Retirement Scenarios:
Frequently Asked Questions (FAQs)
NPS is a government-backed retirement planning scheme. It's a voluntary, long-term investment plan that helps you save for retirement with tax benefits and market-linked returns.
Tier I is a mandatory pension account with lock-in until age 60. Tier II is a voluntary savings account with flexible withdrawals. Tier I offers tax benefits, Tier II doesn't but allows liquidity.
1. Section 80CCD(1): Deduction up to ₹1.5 lakh under 80C. 2. Additional ₹50,000 under 80CCD(1B). 3. Employer contribution up to 10% of salary (14% for govt) is tax-free.
At age 60: 60% lump sum (taxable), 40% annuity purchase. Premature exit (after 10 years): 20% lump sum, 80% annuity. Partial withdrawal: Up to 25% after 3 years for specific needs.
Tier I: Minimum ₹500 per contribution, ₹1,000 annually. Tier II: Minimum ₹250 per contribution, no annual minimum. You must maintain minimum balance of ₹1,000 in Tier I.
NPS returns are market-linked and depend on your asset allocation (Equity, Corporate Bonds, Government Bonds, Alternative Assets). Returns vary based on fund manager performance.
NPS Benefits Comparison
| Feature | NPS | PPF | EPF | Mutual Funds |
|---|---|---|---|---|
| Tax Benefits (80C) | ✅ ₹1.5L + ₹50k extra | ✅ ₹1.5L | ✅ ₹1.5L | ❌ Only ELSS |
| Equity Exposure | ✅ Up to 75% | ❌ None | ❌ None | ✅ 100% |
| Lock-in Period | Until 60 years | 15 years | Until retirement | ELSS: 3 years |
| Partial Withdrawal | ✅ After 3 years | ✅ After 6 years | ✅ Specific purposes | ✅ Anytime (except ELSS) |
| Cost (Expense Ratio) | 0.01% - 0.1% | N/A | N/A | 0.5% - 2.5% |
| Annuity Option | ✅ Mandatory 40% | ❌ No | ❌ No | ❌ No |
💡 Pro Tip: NPS works best as a core retirement plan. Combine with PPF for safety and mutual funds for growth. Start NPS early for maximum compounding benefits.
NPS Investment Strategy by Age
Active Choice Strategy:
- Below 35 years: 75% Equity, 25% Bonds (Aggressive)
- 35-45 years: 60% Equity, 40% Bonds (Growth)
- 45-55 years: 40% Equity, 60% Bonds (Balanced)
- 55+ years: 20% Equity, 80% Bonds (Conservative)
Auto Choice (Lifecycle) Strategy:
- Aggressive (LC75): Max equity till 35, then reduces
- Moderate (LC50): Balanced approach throughout
- Conservative (LC25): Minimum equity, maximum safety
- Auto rebalancing: Automatic adjustment every year
⚠️ Important Note: NPS is a market-linked product. Past performance is not indicative of future returns. Consider your risk tolerance before choosing asset allocation.
