Project your National Pension System corpus and monthly pension at retirement. Includes Govt 14% employer contribution.
Enter your details to project your NPS corpus and monthly pension.
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Invest your take-home in equity mutual funds alongside NPS for long-term wealth creation.
Govt contributes 14% of Basic+DA to your NPS — over and above your 10%. This calculator includes both.
See how your corpus grows year-by-year with compounding returns and salary increments factored in.
40% of corpus must be used to buy annuity. Calculator shows expected monthly pension from that annuity.
The National Pension System (NPS) is mandatory for all Central Government employees recruited on or after January 1, 2004. It is a defined-contribution pension scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
Employee contribution: 10% of (Basic + DA) deducted monthly. Government contribution: 14% of (Basic + DA) credited to Tier I account. Total: 24% of Basic+DA every month, making NPS one of the most powerful wealth-building instruments for government employees.
At least 40% of the accumulated corpus must be used to purchase an annuity plan from an empanelled life insurer, which provides a monthly pension for life. The remaining 60% can be withdrawn as a tax-free lump sum. If the total corpus is below Rs.5 lakh, the entire amount can be withdrawn as lump sum.
Partial withdrawal up to 25% of own contribution is allowed after 3 years for specific purposes like higher education, medical treatment, home purchase. Premature exit before 60 (after 10 years) requires at least 80% of corpus to be annuitised; only 20% can be withdrawn as lump sum.
NPS Tier I Government Securities fund has given ~8-9% CAGR historically. The equity fund (Scheme E) has returned ~10-12% CAGR. Most government employees are auto-enrolled in the default Moderate Life Cycle Fund. You can switch to active choice to optimise your allocation.
OPS provided 50% of last drawn salary as lifetime pension with DA benefits — a defined benefit. NPS is defined-contribution and the final corpus depends on market returns and salary growth. At 9% NPS returns and 5% salary growth, NPS typically accumulates a larger lump sum but the pension quantum depends on annuity rates at the time of retirement.