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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  • On retirement, a part of the corpus can be withdrawn in lumpsum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

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

How NPS Works

current age

Current Age

current age

Accumulation Phase

Open NPS Account

curveline
rip subscriber

Subscribers Death

Nominee/Legal heir
gets corpus

current age

Retirement Age 60 Years

60%
Withdrawal
+ 40%
Annuity Plan
current age

Withdrawal Phase

Starts getting pension

Features and Benefits

icon
Regulated

By Pension Fund Regulatory & Development Authority (PFRDA)

Low Cost
Low Cost

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

Flexibility
Flexibility

Invest in asset classes and pension funds of your choice

Attractive Returns
Attractive Returns

With a mix of Equity, Debt & Alternates

Portable
Portable

Transfer NPS account across employers & location

Portable
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%
Alternate Investments Very High
Upto 5%

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.

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Indicative Returns (p.a.)
10.45%-10.71%
Indicative Value at Maturity*
₹11.09 Cr - ₹11.22 Cr
Stocks
Corporate Debt
Government Bonds
* 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

icon
Exit at Maturity (60 years)
  • Up to 60% of corpus can be withdrawn Tax-Free
  • Minimum 40% to be invested in annuity for monthly pension
  • If corpus ≤ to Rs. 5 lakhs, withdrawal of full amount is permitted
icon
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
icon
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
icon
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

Enter Amount
Current Age
 Years
Retirement Age
 Years
Expected Returns (p.a.)
%
I would like to purchase Annuity for
%
I am expecting an Annuity rate (p.a.) of
%
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.

Fund Manager's Performance

% Returns as on: 04-Apr-2025
Pension Fund Managers Inception Date
Classification of Investments
Alternate Asset (%) Corporate bond (%) Equity (%) Government Bond (%)
Aditya Birla Sun Life Pension Management Limited
9-May-2017 9.12 9.66 2.28 11.06
Axis Pension Fund Management Limited
21-Oct-2022 7.55 9.78 2.96 10.70
DSP Pension Fund Managers Private Limited
27-Dec-2023 7.00 9.67 16.44 11.57
HDFC Pension Management Company Limited
10-Oct-2016 8.69 10.19 3.03 11.41
ICICI Prudential Pension Funds Management Company Limited
21-Nov-2016 10.63 9.92 2.93 11.35
Kotak Mahindra Pension Fund Limited
14-Oct-2016 7.72 9.85 5.11 10.80
LIC Pension Fund Ltd
13-Oct-2016 8.10 9.36 2.05 11.48
Max Life Pension Fund Management Limited
12-Sep-2022 7.03 9.56 0.91 11.04
SBI Pension Funds Private Limited
13-Oct-2016 10.90 10.01 -1.47 11.53
Tata Pension Management Ltd
19-Aug-2022 9.76 10.00 1.82 11.19
UTI Retirement Solutions Limited
14-Oct-2016 11.47 9.67 4.68 11.48

Charges

Charge Head Charges
Account Opening ₹ 200
Contribution Processing 0.50% (Min. ₹ 30 and Max. ₹ 25,000)
Non-Financial Transaction Processing ₹ 30
Persistency Charges Transaction Value
₹ 50 per annum ₹ 1,000 - ₹ 2,999
₹ 75 per annum ₹ 3,000 - ₹ 6,000
₹ 100 per annum above ₹ 6,000
Applicable for subscribers (except corporate NPS) active for more than 6months with a POP.

AUM Slab (in Cr) PFM charges % for the Slab
Upto ₹ 10,000 0.09%
₹ 10,001 to ₹ 50,000 0.06%
₹ 50,001 to ₹ 1,50,000 0.05%
₹ 1,50,001 and Above 0.03%

Charge Head Kfintech NSDL
PRAN Generation ₹ 200 ₹ 39.36
Annual Maintenance ₹ 57.63 ₹ 69.00
Financial Transaction processing ₹ 3.36 ₹ 3.75

Intermediary Charge Head Charges (Annual)
Custodian Custodian Fee 0.0032% p.a
NPS Trust Reimbursem-ent of Expenses 0.005% p.a

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