When you invest in the National Pension System, a government-backed retirement savings scheme in India that lets you build a pension corpus through regular contributions. Also known as NPS, it’s one of the most tax-efficient ways to plan for retirement, especially if you’re employed in the private sector or self-employed. But knowing how much you’ll get at 60 isn’t just about how much you put in—it’s about returns, withdrawal rules, and annuity choices. That’s where an NPS pension calculator comes in. It turns guesswork into clarity.
Most people don’t realize that NPS doesn’t guarantee a fixed payout like PPF. Instead, your retirement income depends on how your corpus grows over time, how much you withdraw as a lump sum, and what kind of annuity you pick. If you invest ₹5,000 a month for 25 years at an average 9% return, you could end up with around ₹55 lakh. But if you withdraw 60% tax-free and use the rest to buy an annuity, your monthly pension might be just ₹20,000–₹25,000. That’s not enough for many. That’s why comparing NPS with PPF matters—PPF gives you stable, predictable returns, while NPS offers higher growth potential but with market risk.
The calculator doesn’t just spit out numbers. It shows you how small changes make big differences. Increase your contribution by ₹1,000 a month? That could add ₹8–10 lakh to your corpus. Delay retirement by two years? That’s another ₹5–7 lakh. Switch from aggressive to moderate allocation? Your returns drop, but so does your risk. These aren’t theoretical numbers—they’re based on real NPS performance data from the last decade. And if you’re still working, your employer might be contributing too. Under Section 80C, you can claim up to ₹1.5 lakh in deductions, and if your employer matches your contribution, that’s free money going into your pension pot.
What you’ll find below are real guides that break down exactly how NPS works: how to use a pension calculator correctly, what happens when you withdraw at 60, why some people lose money by choosing the wrong annuity, and how NPS stacks up against PPF, EPF, and other retirement tools. No fluff. No jargon. Just what you need to know to make sure your retirement doesn’t turn into a financial surprise.
Use the NPS Pension Calculator in India to estimate your monthly retirement income based on your contributions, investment returns, and annuity rates. Know what to expect after 60.
Continue Reading
