🏛️ NPS Calculator

NPS (National Pension System) is a government-backed defined contribution pension scheme. You invest during working years; at retirement you get: 60% as lump sum (tax-free) 40% must buy annuity → monthly pension (taxable) Regulated by: PFRDA (Pension Fund Regulatory and Development Authority) Open to: All Indian citizens 18-70 years

Asset Class E (Equity): Invests in equity & equity-related instruments Expected return: 10-14% p.a. (market-linked) Max allocation: 75% (under Active Choice) Asset Class C (Corporate Bonds): Invests in corporate debt instruments Expected return: 8-10% p.a. Relatively stable returns Asset Class G (Government Securities): Central & state government bonds Expected return: 7-9% p.a. Safest — backed by government Under Auto Choice (Lifecycle fund): Age 18-35: 75% E, 10% C, 15% G Age 36-50: Gradually shifts to G Age 51-60: 15% E, 10% C, 75% G

At Age 60 (Normal Superannuation): 60% can be withdrawn as lump sum → Tax-FREE 40% must be used to buy annuity from PFRDA-approved insurance company → Monthly pension (Taxable) Before Age 60 (Partial Withdrawal): After 3 years: Up to 25% for specific purposes (education, marriage, home, medical emergency) Max 3 partial withdrawals in lifetime Exit before 60 (premature): At least 80% must be used for annuity Only 20% can be withdrawn Death of subscriber: Entire corpus paid to nominee as lump sum No mandatory annuity purchase

Annuity Corpus = 40% of Total NPS Corpus Monthly Pension ≈ (Annuity Corpus × Annual Rate) / 12 Example: Corpus ₹1 Cr, 40% annuity = ₹40L At 6% annuity rate: ₹40L × 6% / 12 = ₹20,000/month Annuity rates vary by insurance company and type: Life Annuity: Lower rate, no return of purchase Return of Purchase: Slightly lower, corpus returned on death Joint Life: Lower, continues for spouse after death Increasing Annuity: Lowest, increases 3% per year