NPS Calculator – Build Your Retirement Nest Egg
Imagine a retirement where you don't have to worry about bills. The National Pension System (NPS) is designed to turn that imagination into reality. It's a government-backed, voluntary retirement savings scheme that helps you build a substantial corpus.
Our NPS Calculator is your crystal ball. It projects how much wealth you can accumulate by the time you hang up your boots. Simply input your monthly contribution and expected return to see your potential lump sum and monthly pension.
Why NPS Should Be in Your Portfolio
NPS is more than just a tax-saving instrument; it's a wealth-creation engine.
Unmatched Tax Efficiency
It's the only product that offers an exclusive tax deduction of ₹50,000 under Section 80CCD(1B), over and above the ₹1.5 Lakh limit of Section 80C.
Power of Equities
NPS allows you to invest in the stock market (up to 75%), giving you a chance to earn significantly higher returns than traditional PF or FDs over 20-30 years.
Auto-Rebalancing
With the 'Auto Choice' option, your portfolio automatically shifts from equity to debt as you age, protecting your corpus from market volatility near retirement.
Portable Account
Your PRAN (Permanent Retirement Account Number) stays with you throughout your career, even if you change jobs or locations across India.
Frequently Asked Questions (FAQs)
Tier I vs. Tier II: What's the difference?
Tier I is the mandatory retirement account with tax benefits and lock-in restrictions. Tier II is a voluntary savings account with no lock-in (you can withdraw anytime) but offers no tax benefits. You need a Tier I account to open a Tier II account.
Can I withdraw my entire NPS corpus at 60?
No. You can withdraw a maximum of 60% as a tax-free lump sum. The remaining 40% must be used to purchase an annuity plan from an insurance provider to ensure you have a regular income stream.
What happens if the subscriber dies before 60?
In the unfortunate event of death, the entire accumulated corpus (100%) is paid to the nominee or legal heir. There is no requirement to purchase an annuity in this case.
Can I change my fund manager?
Yes. NPS offers the flexibility to change your Pension Fund Manager (PFM) once a year if you are unhappy with the performance. You can also change your investment choice (Active/Auto) twice a year.
Is the 60% withdrawal taxable?
No. The 60% lump sum withdrawal at maturity is completely tax-free. This makes NPS an Exempt-Exempt-Exempt (EEE) instrument partially, as the returns and maturity amount (up to 60%) are tax-exempt.