Estimates your National Pension System corpus at retirement (age 60), and the monthly pension from the portion compulsorily used to buy an annuity.
The National Pension System is a market-linked retirement savings scheme where your monthly contributions are invested (in a mix of equity, corporate bonds, and government securities, based on your chosen allocation) until you turn 60. At retirement, at least 40% of the corpus must be used to purchase an annuity, which pays you a regular pension; the remaining amount can be withdrawn as a lump sum.
Because returns are market-linked rather than fixed, the corpus this calculator shows is an estimate based on your assumed return rate — actual returns depend on the specific NPS fund manager and asset allocation you choose.
Yes, for most subscribers — at least 40% of your NPS corpus must go toward buying an annuity at retirement, which then pays you a monthly pension for life. You can choose to annuitize more than 40% if you want a higher pension.
The portion withdrawn as a lump sum (up to 60% of the corpus) is tax-free under current rules. The pension you receive from the annuity is taxable as regular income in the year you receive it.
Yes — NPS offers you a choice between Active choice (you set the equity/debt/government-security allocation yourself) and Auto choice (allocation shifts automatically as you age).