Invest in NPS
& avail Tax benefits!
Retirement & Tax planning can be two sides of the same coin!
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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- On retirement / after 15 Years, a part of the corpus can be withdrawn as lumpsum
- Remaining corpus is invested in an annuity plan to secure regular income
Types of NPS Account
Tier-l account mandatory to join NPS
Investment locked for 15 Years from start date / till 60
Withdrawals are
conditional
Tax benefits can be
claimed
Only Tier-I account holders can open it
No lock-in period on
investment
Flexible withdrawal
& exit rules
No tax exemptions
on contributions
How NPS Works
Current Age
Accumulation Phase
Open NPS Account
Subscribers Death
Nominee/Legal heir
gets corpus
15 Years from start date / till 60 Years
Withdrawal + Min. 20%
Annuity
Withdrawal Phase
Starts getting pension
Features and Benefits
By Pension Fund Regulatory & Development Authority (PFRDA)
Fund Management fees upto ~0.30% p.a.
Invest in asset classes and pension funds of your choice
With a mix of Equity & Debt
Transfer NPS account across employers & location
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%
|
Auto Choice
Asset allocation for Aggressive plan
It automatically gets re-adjusted with the age of the subscriber as shown in the chart below:
| Your age | Equity | Corporate Bond | Government Securities |
|---|---|---|---|
| Upto 35 years | 75% | 10% | 15% |
| 36 years | 71% | 11% | 18% |
| 37 years | 67% | 12% | 21% |
| 38 years | 63% | 13% | 24% |
| 39 years | 59% | 14% | 27% |
| 40 years | 55% | 15% | 30% |
| 41 years | 51% | 16% | 33% |
| 42 years | 47% | 17% | 36% |
| 43 years | 43% | 18% | 39% |
| 44 years | 39% | 19% | 42% |
| 45 years | 35% | 20% | 45% |
| 46 years | 32% | 20% | 48% |
| 47 years | 29% | 20% | 51% |
| 48 years | 26% | 20% | 54% |
| 49 years | 23% | 20% | 57% |
| 50 years | 20% | 20% | 60% |
| 51 years | 19% | 18% | 63% |
| 52 years | 18% | 16% | 66% |
| 53 years | 17% | 14% | 69% |
| 54 years | 16% | 12% | 72% |
| 55 years and above | 15% | 10% | 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.
Exit & Withdrawal
- Up to 80% of corpus can be withdrawn
- Minimum 20% to be invested in annuity for monthly pension
- If subscriber started investing in NPS before the age of 60 Years and corpus ≤ ₹8 lakhs, withdrawal of full amount is permitted
- If subscriber started investing in NPS after the age of 60 Years and corpus ≤ ₹12 lakhs, withdrawal of full amount is permitted
- 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
- 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 ≤ ₹2.5 lakhs, withdrawal of full amount is permitted
- Up to 25% of the contributions deposited can be withdrawn
- Withdraw upto 4 times before maturity
- 1st withdrawal can be exercised 3 yrs after a/c opening
- Minimum of 4 Years between successive withdrawals
Fund Manager's Performance
| Pension Fund Managers | Inception Date | |||
|---|---|---|---|---|
| Classification of Investments | ||||
| Corporate bond (%) | Equity (%) | Government Bond (%) | ||
Aditya Birla Sun Life Pension Fund Management Ltd |
09-May-2017 | 5.19 | 6.39 | 4.18 |
Axis Pension Fund Management Ltd |
21-Oct-2022 | 5.53 | 1.60 | 4.04 |
DSP Pension Fund Managers Private Ltd |
26-Dec-2023 | 5.69 | -3.52 | 3.68 |
HDFC Pension Fund Management Ltd |
01-Aug-2013 | 5.58 | 5.83 | 3.58 |
ICICI Pension Fund Management Ltd |
18-May-2009 | 5.56 | 6.48 | 3.98 |
Kotak Mahindra Pension Fund Ltd. |
15-May-2009 | 5.85 | 3.88 | 3.51 |
LIC Pension Fund Ltd. |
23-Jul-2013 | 5.25 | 3.99 | 4.07 |
SBI Pension Funds Private Ltd |
15-May-2009 | 5.67 | 5.06 | 4.04 |
Tata Pension Fund Management Pvt Ltd |
19-Aug-2022 | 5.10 | 6.81 | 3.47 |
UTI Pension Fund Ltd |
21-May-2009 | 5.84 | 3.49 | 4.13 |
NPS Calculator
Start your SIP with top performing funds
Please note:This pension calculator allows subscribers to estimate the tentative pension and lump-sum amount at 60 years of age, based on regular monthly, yearly, or lump-sum contributions to their NPS account. A percentage of the corpus at retirement is allocated to purchase an annuity. Subscribers must input an assumed rate of return to compute the monthly pension. All calculations and figures shown are indicative only and not based on actual outcomes.
Charges
Looking to invest in NPS as an NRI?
Frequently Asked Questions
NPS is regulated by the 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 a distributor, and all disputes with respect to such distribution activity would not be redressed via SCORES/ODR, the Exchange investor redressal forum or the arbitration mechanism.
