What is the minimum annuity percentage in NPS?
At maturity (age 60), at least 40% of your NPS corpus is used to purchase annuity, and up to 60% can be withdrawn as lump sum.
NPS Calculator (India) 2026 — Pension, Lump Sum & Tax Benefit
Estimate NPS retirement corpus, tax-free lump sum, and projected monthly pension using contribution, return assumptions, and annuity allocation.
Subscriber type:Min. 20% annuity (NPS 3.0), up to 100% equity
NPS Inputs
Max 85 (NPS 3.0 update)
80C / 80CCD(1B)
80CCD(2) — not taxable
Increase contributions each year to match salary growth (5–8% typical)
Equity (E): historical 12–14% · Balanced: 9–11% · Conservative (G): 7–8%
Private sector NPS 3.0: 20% minimum annuity (corpus > ₹12L)
PFRDA empanelled annuity providers currently offer 5–7%
India avg CPI: ~5–6% · Used to show real purchasing power
Total Corpus at Retirement
₹2,86,17,631
Invested: ₹54,19,218Growth: ₹2,31,98,413
Real value in today's money
₹37,23,303
Adjusted for 6% inflation over 35 years
NPS 3.0 exit rule: Corpus > ₹12L — Max 80% lump sum + 20% compulsory annuity (Private, NPS 3.0)
Lump Sum (Tax-free)
₹1,71,70,579
60% of corpus
Monthly Pension
₹57,235
Real value: ₹7,447/mo · Taxable
Corpus Composition
Invested18.9%
Growth (compounding)81.1%
Tax savings reminder
• 80CCD(1B): Up to ₹50,000 per year extra deduction — exclusive to NPS, over and above the ₹1.5L 80C limit (Old Regime only)
• 80CCD(2) (employer): Employer NPS contributions are not taxable — up to 14% of Basic + DA (both regimes in NPS 3.0, up from 10%)
• At exit: Lump sum withdrawal is fully tax-free. Monthly annuity income is taxed as per your slab.
Frequently Asked Questions
Is NPS withdrawal tax-free?
The eligible lump sum withdrawal portion is tax-free as per prevailing rules, while pension income from annuity is generally taxable as per slab.
How much tax deduction can NPS provide?
NPS can provide deductions under Section 80CCD, including the additional 80CCD(1B) benefit, subject to current tax rules and limits.
Can I withdraw from NPS before retirement?
Partial withdrawals are allowed under specified conditions after lock-in periods as per NPS regulations.
Disclaimer: Estimates are illustrative only and should not be treated as investment, legal, or tax advice.