National Pension System (NPS) Calculator

Yes. At age 60, up to 60% of the total corpus can be withdrawn as a tax-free lump sum. The remaining 40% (annuity portion) is also tax-free at withdrawal, but the regular annuity pension you receive is taxable as salary income.

Active Choice allows you to decide the asset allocation between Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Assets (A). Auto Choice automatically rebalances assets based on your age.

For private sector subscribers, the maximum equity exposure is 75% up to age 50, after which it gradually decreases to 50% by age 60.

NPS offers lower management fees (under 0.09%) and exclusive tax deductions (Section 80CCD), but mutual funds provide higher liquidity, flexibility, and potentially higher returns with direct equity exposure.

Your NPS account is tied to your Permanent Retirement Account Number (PRAN), which remains completely portable across employers, jobs, and cities.

The National Pension System (NPS) is a government-backed, voluntary retirement savings scheme designed to provide a monthly pension and a retirement corpus for Indian citizens.

Any Indian citizen (both resident and non-resident) between the ages of 18 and 70 years can open an NPS account.

Tier-I is the primary pension account with tax benefits but strict withdrawal rules until age 60. Tier-II is a voluntary savings account with no lock-in period but no tax benefits.

You can claim up to ₹1.5 Lakhs under Section 80C, an additional exclusive deduction of up to ₹50,000 under Section 80CCD(1B), and employer contributions up to 10% of basic salary under Section 80CCD(2).

Partial withdrawals up to 25% of your own contributions are allowed after 3 years for specific reasons like education, marriage, house construction, or critical illness, up to 3 times.