NPS Calculator – National Pension System Returns
Calculate your retirement corpus and estimated monthly pension from the National Pension System (NPS). NPS is a voluntary retirement savings scheme in India that helps you build a retirement corpus through regular contributions.
Calculate Your NPS Returns
Frequently Asked Questions
How much NPS will I get at retirement?
Your NPS corpus at retirement depends on your monthly contribution, years of investment, and expected returns. The calculator helps you estimate this. At retirement, you must use at least 40% of the corpus to purchase an annuity (which provides monthly pension), and you can withdraw the remaining 60% as lumpsum. The monthly pension depends on the annuity rate and the amount used for annuity purchase.
Is NPS good for retirement planning?
Yes, NPS is an excellent tool for retirement planning. It offers tax benefits, professional fund management, and helps build a disciplined retirement corpus. However, it has restrictions like mandatory annuity purchase (40% minimum) and limited withdrawal options. NPS works well as part of a diversified retirement portfolio along with other investments like PPF, EPF, and mutual funds.
NPS Tier 1 vs other options?
NPS Tier 1 is a long-term retirement savings account with tax benefits but limited withdrawal options. It's different from Tier 2 (voluntary savings with flexible withdrawals) and other options like PPF (15-year lock-in, guaranteed returns) or EPF (for salaried employees). NPS Tier 1 is ideal for those who want a structured retirement savings plan with professional fund management and are comfortable with the annuity requirement.