Work out NPS corpus at retirement, lump sum vs annuity split, and indicative monthly pension
Minimum: ₹500/month
Minimum exit age: 60 years
Typical NPS returns: 9-12% (equity heavy)
Minimum 40% must be used to purchase annuity
Current annuity rates: 5-7% per annum
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| Year | Age | Invested | Corpus Value | Returns |
|---|---|---|---|---|
| 1 | 31 | ₹60,000 | ₹63,351 | ₹3,351 |
| 2 | 32 | ₹1,20,000 | ₹1,33,337 | ₹13,337 |
| 3 | 33 | ₹1,80,000 | ₹2,10,650 | ₹30,650 |
| 4 | 34 | ₹2,40,000 | ₹2,96,059 | ₹56,059 |
| 5 | 35 | ₹3,00,000 | ₹3,90,412 | ₹90,412 |
| 6 | 36 | ₹3,60,000 | ₹4,94,645 | ₹1,34,645 |
| 7 | 37 | ₹4,20,000 | ₹6,09,792 | ₹1,89,792 |
| 8 | 38 | ₹4,80,000 | ₹7,36,996 | ₹2,56,996 |
| 9 | 39 | ₹5,40,000 | ₹8,77,521 | ₹3,37,521 |
| 10 | 40 | ₹6,00,000 | ₹10,32,760 | ₹4,32,760 |
| 11 | 41 | ₹6,60,000 | ₹12,04,255 | ₹5,44,255 |
| 12 | 42 | ₹7,20,000 | ₹13,93,708 | ₹6,73,708 |
| 13 | 43 | ₹7,80,000 | ₹16,02,998 | ₹8,22,998 |
| 14 | 44 | ₹8,40,000 | ₹18,34,205 | ₹9,94,205 |
| 15 | 45 | ₹9,00,000 | ₹20,89,621 | ₹11,89,621 |
Showing first 15 years only
How lump sum and monthly pension change if you buy 40–100% of corpus as annuity (minimum 40% at normal exit).
Projects Tier I-style monthly contributions until your chosen retirement age at a fixed return rate, then splits the corpus into a tax-free lump sum portion and an annuity that funds an indicative monthly pension. It also shows a rough annual tax saving at the 30% slab on contributions up to ₹2 lakh.
Corpus uses the standard SIP formula with monthly compounding. At exit, the annuity share you enter (40% minimum at normal retirement) buys pension; the rest is lump sum. Monthly pension = annuity corpus × annuity return rate ÷ 12 — a simple interest-style estimate, not a quoted annuity product rate.
Example: ₹5,000/month from age 30 to 60 at 10% → corpus about ₹1.14 crore on ₹18 lakh invested. With 40% annuity at 6% → lump sum about ₹68 lakh, pension about ₹22,800/month.
On normal exit, at least 40% of corpus must go into an annuity; up to 60% can be taken as lump sum (tax treatment depends on rules in force at withdrawal). You can defer lump sum and annuity purchase up to age 75. Premature exit before 60 follows stricter splits — this calculator models normal retirement only.
Self-contribution can count under 80CCD(1) within the ₹1.5 lakh 80C cap, plus up to ₹50,000 extra under 80CCD(1B). Employer contribution under 80CCD(2) is not in the form. The tax benefit row assumes 30% on min(annual contribution, ₹2 lakh) — your slab and full 80C usage will change the actual saving.
Tier II, partial withdrawals, employer match, PFM charges, GST, actual annuity quotes from insurers, inflation, and post-retirement tax on pension are omitted. NPS returns are market-linked — the rate you enter is an assumption, not a promise.
Check latest PFRDA exit and tax rules on the CRA portal. Compare NPS with EPF, PPF, and voluntary mutual fund SIPs on liquidity and lock-in. For retirement income planning, pair this with the retirement or inflation calculators so pension is in today's purchasing power.
Disclaimer: Projections use constant returns and simplified annuity math. NPS rules, tax law, and fund performance change — confirm figures with your CRA statement and tax adviser.
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