NPS (National Pension System) Calculator

What is NPS (National Pension System)?

NPS is a government-backed retirement savings scheme initiated by the Pension Fund Regulatory and Development Authority (PFRDA). It is a mix of Equity, Corporate Debt, and Government Bonds, offering higher returns than traditional PPF or EPF.

Key Benefits of NPS:

Extra Tax Saving: Apart from the ₹1.5 Lakh limit under Section 80C, NPS offers an additional ₹50,000 deduction under Section 80CCD(1B).
Low Cost: It has the lowest fund management charges in the industry (0.01%).
Flexibility: You can choose your own asset allocation (Active Choice) or let the system manage it based on your age (Auto Choice).

Frequently Asked Questions (FAQs)

Q1. What happens at age 60?
At maturity (age 60), you can withdraw up to 60% of the corpus as tax-free lumpsum. The remaining 40% must be used to purchase an Annuity (Pension Plan) which provides a monthly income for life.

Q2. Can I withdraw before 60?
Partial withdrawals (up to 25% of your own contribution) are allowed after 3 years for specific reasons like children's marriage, higher education, or buying a house.

Q3. How much pension will I get?
The pension amount depends on the "Annuity Rate" at the time of your retirement. Currently, annuity rates are around 6% to 7% p.a.

Q4. Can I open an NPS account with AviUrade Financial Services?
Yes! We can help you open an NPS Tier-I and Tier-II account digitally. Contact us to start your retirement planning today.

Disclaimer:
The calculator results are estimates based on assumed rates of return and do not guarantee actual pension amounts. NPS investments are subject to market risks.