National Pension System (NPS) Calculator

About National Pension System (NPS)

The National Pension System (NPS) is a voluntary, defined contribution pension system designed to build a retirement corpus through market-linked returns. At retirement, at least 40% of the corpus must be used to purchase an annuity for a monthly pension, while up to 60% can be withdrawn as a lump sum.

Key Features

• Market-Linked Returns: Growth depends on investment choices (equity, bonds, etc.).
• Annuity Purchase: 40% of corpus provides a lifelong monthly pension (assumed 6% annuity rate here).
• Lump Sum: Withdraw up to 60% of the corpus tax-free at retirement.
• Tax Benefits: Deductions under Section 80CCD(1B) up to ₹50,000.