loader2
Login OPEN ICICI 3-in-1 Account
Text Size
Text to Speech
Color Contrast
Pause Animations
Open ICICI 3-in-1 Account

Invest in NPS
& avail Tax benefits!

Retirement & Tax planning can be two sides of the same coin!

Invest Now
NPS
Calculate limits Now

What is National Pension System (NPS)?

  • A government sponsored retirement savings scheme
  • Regulated by Pension Fund Regulatory & Development Authority (PFRDA)
  • Allows regular contribution to a pension fund during working life
  • Subscribers choose from Equity and Fixed Income funds to grow savings
  • On retirement, a part of the corpus can be withdrawn in lumpsum
  • Remaining corpus is invested in an annuity plan to secure regular income

Types of NPS Account

Tier I - Tax Saving Account

Tier-l account mandatory to join NPS

Investment is locked-in until the age of 60

Withdrawals are
conditional

Tax benefits can be
claimed

Invest Now
Tier II - Any Time Withdraw

Only Tier-I account holders can open it

No lock-in period on
investment

Flexible withdrawal
& exit rules

No tax exemptions
on contributions

Invest Now

How NPS Works

Current Age

Accumulation Phase

Open NPS Account

curveline
rip subscriber

Subscribers Death

Nominee/Legal heir
gets corpus

Retirement Age 60 Years

60%
Withdrawal + 40%
Annuity Plan

Withdrawal Phase

Starts getting pension

Features and Benefits

Regulated

By Pension Fund Regulatory & Development Authority (PFRDA)

Low Cost

Fund Management fees of less than 0.09% p.a.

Flexibility

Invest in asset classes and pension funds of your choice

Attractive Returns

With a mix of Equity & Debt

Portable

Transfer NPS account across employers & location

Tax Savings

On Investment, Capital gain & Withdrawals

Investment Options under NPS

Fund Option Risk Profiling Exposure Limit
Government Securities Low
Upto 100%
Corporate Bonds Moderate
Upto 100%
Equities High
Upto 75%

Tax Benefits

Category Under Section Investment Limit in Old Tax Regime Investment Limit in New Tax Regime
Self-Contribution
 80 CCD (1) ₹1,50,000 Not Applicable
Self-Contribution
 80 CCD (1B) ₹50,000 Not Applicable
Employer Contribution
 80 CCD (2) 10% of Basic Salary* 14% of Basic Salary*

*Employer Contribution to NPS account qualifies for deduction u/s 80 CCD (2). Permissible limit is 10% of basic salary for employees in old tax regime and 14% of basic salary for employees in new tax regime. Please note that employer’s contribution to NPS, EPF and/or Superannuation upto Rs. ₹7.5 lakhs p.a. cumulatively, is eligible for tax deduction; excess amount will be taxed as perquisite in the hands of the employee.

Auto Choice

Low Risk Medium Risk High Risk
View Details
Indicative Returns (p.a.)
10.45%-10.71%
Indicative Value at Maturity*
₹11.09 Cr - ₹11.22 Cr
Stocks
Corporate Bond
Government Securities
* Indicative return represents the average returns across PFMs considering 7 - 10 Years returns. Indicative Value at Maturity considered for an investment of ₹10,000 per month for 25 years

Exit & Withdrawal

Exit at Maturity (60 years)
  • Up to 60% of corpus can be withdrawn Tax-Free
  • Minimum 20% to be invested in annuity for monthly pension
  • If corpus ≤ to Rs. 5 lakhs, withdrawal of full amount is permitted
Exit on Death
  • On death 100% of the pension wealth amount will be payable to the nominee / legal heir of the subscriber
  • There would not be any purchase of annuity / monthly pension
Pre-Mature Exit
  • Permitted only after 5 years of participation
  • Up to 20% of corpus can be withdrawn Tax-Free
  • Minimum 80% to be invested in annuity for monthly pension
  • If corpus ≤Rs. 2.5 lakhs, withdrawal of full amount is permitted
Partial Withdrawal
  • Up to 25% of the contributions deposited can be withdrawn
  • In the entire life span, up to 3 withdrawals can be made
  • 1st withdrawal can be exercised 3 yrs after a/c opening
  • 2nd & 3rd withdrawal can be exercised anytime after previous one

NPS Calculator

₹
 Years
 Years
%
%
%
The total value of your investment after 30 Years will be
₹ 4,36,06,469
pie-chart
Invested amount
₹ 36,00,000
Est. returns
₹ 4,06,06,469
Total Investment
₹ 36,00,000
Indicative Gain
₹ 1,86,00,000
Indicative Retirement Corpus
₹ 4,36,06,469
Lumpsum Withdrawal at Retirement
₹ 36,00,000
Corpus Invested for Pension
₹ 1,86,00,000
Monthly Pension
₹ 36,00,000

Start your SIP with top performing funds

Please note: Subscribers will be able to know how tentative pension and lumpsum amount may be expected on retirement at 60 years basis regular monthly contributions to NPS account. A percentage of the corpus on retirement is used for purchasing annuity. Subscribers are required to key in the assumed rate of return on their investment and that for annuity to compute monthly pension. The above calculation and illustration of figures are indicative only and not on actual basis.

Our Videos

View all Videos

Financialmindfulness, NPS - Advantages & Tax benefits

NPS: Pension and Tax saving in one

Investonomics Live Understanding National Pension System with Rahul Bhagat, Sr. Vice President and Business Head- ICICI Prudential Pension Funds

Related articles

View all
15 Jun 2021

Planning your journey post retiement? Start investing in national pension scheme and enjoy your golden days of retirement. Visit ICICIdirect to know more

15 Jun 2021

Looking to save some taxes? Start investing in national pension scheme today and get tax benefits under sec80c. Click here to read to full article

15 Jun 2021

Now enjoy your carefree retirement life with national pension scheme in India. Start your NPS today and secure your retirement life. Click here to read full article

NPS is regulated by Pension Fund Regulatory and Development Authority (PFRDA). ICICI Securities Limited is a PFRDA registered POP with Reg. no.: 05092018.
ICICI Securities is just acting as distributor and all disputes with respect to such distribution activity, would not have access to SCORES/ODR, Exchange investor redressal forum or Arbitration mechanism.

✕
Application status