Estimate how much your National Pension System (NPS) account could be worth at 60, how much you can take as a lump sum, and the monthly pension from the annuity.
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NPS withdrawal rules at 60 (non-government)
- Corpus up to ₹8 lakh: withdraw it all.
- ₹8–12 lakh: up to ₹6 lakh as a lump sum; the rest paid out over at least six years or used for an annuity.
- Above ₹12 lakh: up to 80% as a lump sum, and at least 20% must buy an annuity.
- Only 60% of the corpus is tax-free; the annuity pension is taxable as income.
Example: ₹5,000 a month from age 30 at a 10% return grows to about ₹1.14 crore at 60. Taking 60% (₹68.4 lakh) as a tax-free lump sum leaves ₹45.6 lakh for an annuity, worth about ₹22,800 a month at a 6% annuity rate.
Frequently asked questions
What return should I expect from NPS?
It depends on how much is in equity. Returns are market-linked and not guaranteed, so try a few rates such as 8%, 10% and 12%.
Is NPS better than PPF?
PPF is guaranteed and fully tax-free; NPS can grow more but is market-linked and partly locked into an annuity. Compare with the PPF calculator.
Withdrawal rules as published by PFRDA for non-government subscribers; government employees follow different rules. Check the latest rules before you exit.