NPS Calculator

Understanding your NPS projection

The National Pension System is built for long-term retirement saving. You contribute regularly until 60, the money is invested in a mix of equity, corporate bonds and government securities, and at retirement part of the corpus can be withdrawn while the rest buys an annuity that pays a monthly pension. This calculator estimates all three numbers: the corpus at 60, the lump sum you can take, and the likely pension.

The annuity share is the setting to explore. A larger share gives a bigger monthly pension but less money in hand at retirement. Annuity rates are fixed when you buy the plan, so the pension stays the same each month and does not rise with inflation. Try a few annuity rates to see how sensitive the pension is, and compare the lump sum against your other plans for that money.

Your expected return depends on your asset mix. A younger subscriber with a higher equity share may reasonably assume more than someone close to retirement in a conservative mix. Use a modest figure to avoid overestimating. NPS also offers tax benefits, including an extra deduction for your own contributions under the old regime and a deduction for employer contributions under both regimes, which can make it attractive for salaried people. Rules on withdrawals and annuities have changed several times, so check the current PFRDA guidance when you get close to retirement, and treat this projection as a planning tool rather than a final figure. Reviewing your fund choice every few years keeps the asset mix in line with your age and comfort with risk.