NPS Calculator - National Pension System in India
Plan your retirement with India's most comprehensive pension scheme. Calculate returns, tax benefits, and annuity options.
Annual contribution: ₹60,000
Annuity rate affects your monthly pension calculation
Investment period: 30 years
Best Performer (5Y)
14.5%
Average Return (5Y)
11.0%
Total Funds
5
Avg Expense Ratio
1.01%
| Fund Name | Asset Class | 5Y Return | Expense Ratio | Risk |
|---|---|---|---|---|
HDFC Pension Fund - Equity Scheme HDFC Pension Management Company Ltd. | Equity | 14.5% | 1.01% | High |
SBI Pension Fund - Equity Scheme SBI Pension Funds Pvt. Ltd. | Equity | 13.8% | 1.01% | High |
Kotak Mahindra Pension Fund - Alternative Investment Scheme Kotak Mahindra Pension Fund Ltd. | Alternative Investment | 10.9% | 1.01% | Medium |
ICICI Prudential Pension Fund - Corporate Bond Scheme ICICI Prudential Pension Funds Management Company Ltd. | Corporate Bond | 8.7% | 1.01% | Medium |
UTI Retirement Solutions - Government Securities Scheme UTI Retirement Solutions Ltd. | Government Securities | 7.1% | 1.01% | Low |
Fund Selection Tips
For Young Investors (Age 25-35)
- • Focus on equity funds for higher long-term returns
- • Can tolerate higher volatility for better growth
- • Consider 75-80% equity allocation
For Mid-Career (Age 35-50)
- • Balanced approach with 60-70% equity
- • Mix of equity and corporate bond funds
- • Regular portfolio rebalancing
Important Disclaimer
Past performance is not indicative of future results. Fund performance data is updated as of 2024-12-01. Please consult with a financial advisor before making investment decisions. Returns are subject to market risks.
Maximize your NPS benefits with employer contributions and additional tax savings
How Employer Contribution Works
Contribution Limit
Employers can contribute up to 10% of basic salary + DA to your NPS account. This is over and above your own contributions.
Eligibility Criteria
- • Employee must also contribute to NPS
- • Available for both government and private sector
- • No minimum service period required
- • Contribution continues until retirement
Example Calculation
Basic Salary: ₹50,000/month
Employee Contribution (10%): ₹5,000/month
Employer Contribution (10%): ₹5,000/month
Total Monthly Investment: ₹10,000
Tax Benefits Breakdown
Section 80CCD(1) - Employee Contribution
Up to 10% of salary or ₹1.5 lakh (whichever is lower) under overall ₹1.5 lakh limit of Section 80C.
Section 80CCD(1B) - Additional Deduction
Additional ₹50,000 deduction exclusively for NPS contributions. This is over and above the ₹1.5 lakh limit.
Section 80CCD(2) - Employer Contribution
No upper limit for tax benefits on employer contributions. Entire amount is tax-free for the employee.
Maximum Tax Savings Example
• 80CCD(1): ₹1,50,000 (30% tax bracket = ₹45,000 saved)
• 80CCD(1B): ₹50,000 (30% tax bracket = ₹15,000 saved)
• 80CCD(2): ₹60,000 (30% tax bracket = ₹18,000 saved)
Total Annual Tax Savings: ₹78,000
Key Benefits of Employer Contribution
Faster wealth accumulation with employer matching
Maximum annual tax savings possible
Tax benefits on employer contributions
Choose Point of Presence (POP)
Select from banks, post offices, or online aggregators like eNPS
Fill Application Form
Complete Subscriber Registration Form with accurate details
Submit Documents
Provide KYC documents, photographs, and initial contribution
PRAN Generation
Receive Permanent Retirement Account Number (PRAN) within 15 days
Fund Selection
Choose investment mix across Equity (E), Corporate Bond (C), Government Securities (G), Alternative (A)
Complete list of documents needed to open your NPS account
Mandatory Documents
Important Notes
PAN Card: Mandatory for all NPS accounts. Ensure PAN is linked with Aadhaar for seamless processing.
Bank Account: Should be in the same name as the NPS account holder. Joint accounts are not allowed.
Initial Contribution: Minimum ₹500 for account opening. Can be paid via cheque, DD, or online transfer.
Processing Time: PRAN is typically generated within 15 working days of successful application submission.
Who can invest in National Pension System and contribution limits
Eligibility Requirements
Special Categories
Government Employees
All government employees (except armed forces) joining service from January 1, 2004, are covered under NPS automatically.
Corporate Employees
Private sector employees can join through employer or individually. Employer contributions provide additional tax benefits.
NRIs (Non-Resident Indians)
Can open and maintain NPS accounts but cannot contribute while having NRI status. Can resume upon return to India.
Ideal for NPS Investment
Salaried Employees
Get additional tax benefits through employer contributions under 80CCD(2)
Self-Employed Individuals
Build a disciplined retirement corpus with tax benefits up to ₹2 lakh
Young Professionals (20-35 years)
Leverage the power of compounding over 25-40 years for wealth creation
Tax-Conscious Investors
Maximize tax savings with benefits under sections 80CCD(1), 80CCD(1B), and 80CCD(2)
Risk-Averse Investors
Government-backed scheme with professional fund management
Consider Alternatives
Near Retirement (55+ years)
Limited time for wealth accumulation and mandatory annuity purchase
High Liquidity Needs
Lock-in until age 60 with limited withdrawal options
High-Risk Appetite Investors
Returns may be lower compared to direct equity investments
Irregular Income Earners
May struggle with consistent monthly contributions required for optimal returns
NPS Calculator - Frequently Asked Questions
Get answers to common questions about National Pension System and our NPS calculator
Need More Help?
Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.
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