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What will NPS pay you?

From first contribution to pension cheque

  • Your corpus over your career
  • How it splits at retirement
  • The pension that lands each month
Your monthly pension, after tax
₹35,930
plus ₹1.08 Cr to take at 60, after tax
Pension before tax
₹35,930
no tax at this income
In today's money
₹6,256
after tax
Lump sum after tax
₹1.08 Cr
tax-free

Your NPS journey

Build · 30 yrs
Pension · ₹35,930/mo

Your inputs

What this means

  • ₹25,119 to ₹52,734 a month if returns land between 8% and 12%.
    Why?

    Markets don't pay a fixed rate. The shaded fan on the chart shows how far apart good and bad years can leave you.

  • ₹35,930 a month buys what ₹6,256 buys today.
    Why?

    Prices rise about 6% a year for 30 years before your pension starts, and keep rising after. By 85 it buys what ₹1,545 does today.

  • New regime: your own NPS saves no tax on what you put in.
    Why?

    Only your employer's contribution does. Employer NPS up to 14% of basic is deductible in the new regime. Switch to Old to see what your own contribution saves.

  • ₹39.86 L in becomes ₹1.8 Cr, 4.5× what you put in.
  • Starting at 25 would lift your pension to ₹62,810/month, up 75%.
  • No income tax on your pension if it is your only income.
    Why?

    The pension is taxed as income at slab rates. This takes it as your only income under the new regime, with slabs rising in line with prices. Up to 60% of the pot comes out tax-free.

  • Check the latest PFRDA rules on how much must buy a pension.
    Why?

    The minimum pension share and the tax-free withdrawal limit are set by PFRDA and the Income Tax Act, and can change.

More details

Your savings, up to age 60

What happens at 60

Your NPS pot at 60₹1.8 Cr
Lump sum₹1.08 Cr
₹1.08 Cr yours to take, tax-free
Buys a pension₹71.86 L
₹35,930/month for life, taxed as income

Your pension, and what it buys

  • Pension paid each month
  • What it buys, in today's ₹

Most pensions stay the same for life, while prices keep rising. The filled part shows how much that shrinks.

How it's calculated

Contributions compound monthly until retirement. At retirement the corpus is split:

Lump sum = Corpus × (1 − annuity %)
Pension / month = Corpus × annuity % × annuity rate ÷ 12

Annuity rates vary by insurer and plan. 5.5–7% is a typical range today.

Tax figures follow Budget 2025 rules, for FY 2025-26 onward.

Common questions

What return should I assume for NPS?
It depends on your equity share. Aggressive mixes have historically returned around 9–11%. Conservative, bond-heavy mixes return less.
How much must go into an annuity?
PFRDA sets the minimum annuity share, and the rules have been revised in recent years. Use the slider to model different splits and check the latest rules.
Does my NPS contribution save tax?
In the old regime, the first ₹50,000 a year of your own contribution is deducted under Section 80CCD(1B), on top of the ₹1.5 lakh 80C limit, which saves up to ₹15,600 at the 30% slab. In the new regime your own contribution saves nothing; only your employer's contribution does, up to 14% of basic under Section 80CCD(2).