retirement
NPS Calculator (India)
Calculate your National Pension System corpus and retirement income for India.
Understanding NPS (National Pension System)
🇮🇳 What is NPS?
NPS is a voluntary, long-term retirement savings scheme regulated by PFRDA. It follows an EET (Exempt-Exempt-Taxable) taxation model.
💰 Tax Benefits
- Up to ₹1.5L under Sec 80CCD(1) within 80C limit
- Additional ₹50,000 under Sec 80CCD(1B)
- Employer contribution up to 10% of salary under 80CCD(2)
📊 Asset Allocation
- Equity (E): Up to 75% (reduces with age)
- Corporate Bonds (C): Up to 100%
- Government Securities (G): Up to 100%
- Alternative Assets (A): Up to 5%
⚠️ Withdrawal Rules
- Minimum 40% must be used to buy annuity
- 60% can be withdrawn tax-free as lump sum
- Partial withdrawal allowed after 3 years (25% max)
- Normal exit only at age 60
NPS vs EPF vs 401(k) Comparison
| Feature | NPS (India) | EPF (India) | 401(k) (USA) |
|---|---|---|---|
| Nature | Voluntary | Mandatory (most salaried) | Voluntary, employer-sponsored |
| Returns | Market-linked (8-12%) | Fixed (~8.25%) | Market-linked (varies) |
| Taxation | EET (60% tax-free) | EEE (fully tax-free) | Tax-deferred |
| Retirement Age | 60 years | 58 years | 59.5 years |
| Flexibility | High (choose asset mix) | Low (fixed rate) | High (many fund options) |