What happens to my corpus at retirement?

60% can be withdrawn as tax-free lump sum. 40% must be used to purchase an annuity from any of the 15 registered ASPs (Annuity Service Providers). Monthly pension continues for life.

Can I withdraw before 60?

Partial withdrawal allowed after 3 years for specific purposes (education, marriage, home purchase, illness) — up to 25% of your contribution. Premature exit before 60 requires 80% annuity + 20% lump sum.

Which fund choice should I pick?

Under 40, most advisors recommend Active Choice with 75% Equity (E), 15% Corporate Bond (C), 10% Gilt (G) for maximum long-term growth. Rebalance conservatively as you approach 60. Auto Choice glide-path is a lower-effort alternative.

What happens to my corpus at retirement?

60% can be withdrawn as tax-free lump sum. 40% must be used to purchase an annuity from any of the 15 registered ASPs (Annuity Service Providers). Monthly pension continues for life.

Can I withdraw before 60?

Partial withdrawal allowed after 3 years for specific purposes (education, marriage, home purchase, illness) — up to 25% of your contribution. Premature exit before 60 requires 80% annuity + 20% lump sum.

Which fund choice should I pick?

Under 40, most advisors recommend Active Choice with 75% Equity (E), 15% Corporate Bond (C), 10% Gilt (G) for maximum long-term growth. Rebalance conservatively as you approach 60. Auto Choice glide-path is a lower-effort alternative.

NPS Calculator

National Pension Scheme corpus at retirement — monthly contribution, expected market return, tenure.

Result

Total corpus at retirement

₹11,396,627

Total contributed₹1,800,000
Wealth gained₹9,596,627
Tax-free lump sum (60%)Withdrawal at retirement — fully tax-exempt₹6,837,976
Annuity corpus (40%)Mandatory purchase of pension annuity₹4,558,651
Estimated monthly pensionAssuming 6% annuity rate₹22,793

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How to use this calculator

Enter your monthly NPS contribution (Tier-1 account).
Enter current age + planned retirement age.
Enter expected annual return based on your fund mix (aggressive/moderate/conservative).
Read the retirement corpus, lump sum, and estimated monthly pension.

About this tool

NPS (National Pension Scheme) is India's market-linked retirement scheme regulated by PFRDA. Employees choose their asset mix (Equity / Corporate Bond / Gilt / Alternative) and the corpus grows tax-free. At retirement (default age 60), 60% can be withdrawn as tax-free lump sum, and 40% must be used to buy an annuity providing monthly pension for life. NPS offers unique tax benefit: an additional ₹50,000 deduction under Section 80CCD(1B), over and above the ₹1.5L 80C limit.

Frequently asked

₹50,000 additional deduction under Section 80CCD(1B) — over and above the ₹1.5L Section 80C limit. Employer contribution (up to 10% of salary) qualifies under Section 80CCD(2) with no cap. Highest tax-efficient retirement scheme in India.