🧓 Pension Calculator
NPS Calculator
National Pension System (NPS) is India's government-sponsored retirement scheme offering market-linked returns and unique tax benefits — ₹50,000 additional deduction under Section 80CCD(1B) that no other investment provides.
Extra ₹50K Deduction
80CCD(1B) — beyond 80C limit
Market-Linked Returns
Equity (E), Corporate Debt (C), Govt Bonds (G)
60% Tax-Free Withdrawal
Lump sum at age 60
PFRDA Regulated
Government oversight, DICGC backed
NPS Corpus & Pension Calculator
yrs
₹
% p.a.
% p.a.
At Retirement (Age 60)
Total Corpus
₹1.14 Cr
Lump Sum (60%)
₹68.5L
Annuity (40%)
₹45.7L
Est. Monthly Pension
₹22,837
💡 Tax saving from 80CCD(1B): Up to ₹15,000/yr (30% slab)
NPS FAQs
What is the NPS Section 80CCD(1B) benefit?
80CCD(1B) allows ₹50,000 additional deduction for NPS Tier 1 — completely separate from ₹1.5L under 80C. Total possible deduction: ₹2 lakh. At 30% tax rate: ₹15,000 annual tax saving. This is exclusive to NPS — no other investment (not even PPF or ELSS) gives this extra ₹50K deduction.
Can I withdraw from NPS before age 60?
Partial withdrawal from NPS Tier 1 is allowed after 3 years for: children's higher education, marriage, house purchase/construction, life-threatening illness. Maximum 25% of own contributions (not employer's). Only 3 times in the entire tenure. For complete exit before 60: 80% must go to annuity, 20% lump sum (taxable). This is why NPS is best for long-term retirement — treat it as illiquid.
NPS vs PPF — which is better?
PPF: 7.1% guaranteed, fully tax-free, ₹1.5L/year limit, 15-year lock-in, EEE. NPS: Market-linked (8-12%), 60% lump sum tax-free + 40% annuity taxable, no contribution limit, locked till 60, extra ₹50K deduction under 80CCD(1B). Recommendation: Invest ₹50K/year in NPS for the extra 80CCD(1B) benefit, balance in PPF + equity funds.
What is the minimum monthly contribution for NPS?
NPS Tier 1 minimum: ₹500 per contribution, ₹1,000 per year minimum. No maximum limit. For Tier 2: ₹250 minimum per contribution, ₹250 opening balance. To claim 80CCD(1B) deduction, you need to contribute at least ₹50,000 annually to Tier 1. NPS accounts can be opened at any bank, post office, or online through eNPS portal.