NPS Calculator

At least 20% of your accumulated corpus, for a normal exit at age 60 or retirement, as an "All Citizens" subscriber — this was cut from the long-standing 40% minimum by PFRDA's exit and withdrawal regulations amended in December 2025. You can voluntarily annuitize more than 20% if you want a larger guaranteed pension, but you can't legally annuitize less. Different rules apply for exiting before 60, on death, or if you're a government-sector subscriber.

Whatever isn't mandatorily annuitized — up to 80% of your corpus at the current 20% minimum annuity — can be taken as a lump sum at exit. If your accumulated corpus is ₹12,00,000 or less, PFRDA rules offer a different, more flexible structure instead (a larger immediate withdrawal with the remainder as an annuity or a multi-year systematic withdrawal) — this calculator models the standard larger-corpus case, not that carve-out.

Your annuitized corpus is multiplied by an assumed annual annuity rate, then divided by 12. The annuity rate itself is set by whichever insurance company and annuity product you actually choose at retirement — it's not fixed by PFRDA — so treat the rate you enter here as your own estimate, not a quoted or guaranteed return.

Your own contribution is deductible under Section 80CCD(1) (within the overall Section 80C limit), plus an additional ₹50,000 under Section 80CCD(1B) — on top of, not instead of, your 80C limit. Employer NPS contributions get their own separate deduction under Section 80CCD(2). At exit, the tax-free portion of your lump sum is generally treated as up to 60% of your corpus under the Income Tax Act; whether the additional lump-sum room from the December 2025 PFRDA reform is fully tax-free too is still being clarified, so don't assume your entire 80% lump sum escapes tax without checking current guidance.

Partial withdrawal is allowed from the 3rd year onward, capped at 25% of your own contributions (not your employer's, and not investment gains), for specific purposes like a child's higher education or wedding, buying/building a home, or treatment of specified serious illnesses. Exiting entirely before age 60 for reasons other than these triggers a much higher mandatory annuitization — at least 80% of your corpus — so a full premature exit is deliberately made expensive to discourage using NPS as anything other than a retirement account.