What is the National Pension System (NPS)?
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme initiated by the Government of India. It is a market-linked product offering equity and debt exposure, designed to help you build a massive retirement corpus and secure a monthly pension.
NPS Calculator & Tax Benefits
Our NPS Calculator projects your wealth at age 60 and estimates your monthly annuity payout. NPS offers incredible tax benefits:
- Section 80C: Up to ₹1.5 Lakhs deduction.
- Section 80CCD(1B): An exclusive additional deduction of ₹50,000, bringing total tax savings up to ₹2 Lakhs per year.
Understanding the Annuity Rule
At retirement (age 60), you can withdraw a maximum of 60% of your corpus completely tax-free! The remaining 40% MUST be used to purchase an annuity plan from an IRDAI-regulated life insurance company to guarantee a lifelong monthly pension.