⚠️ Results are indicative only. Actual NPS benefits may vary as per PFRDA rules and annuity provider terms.
| Year | Age | Invested (yr) | Returns (yr) | Corpus End |
|---|
A simple side-by-side comparison of India’s most popular retirement options.
| Feature | 🏦 EPF | 🏛️ PPF | 📈 NPS |
|---|---|---|---|
| Eligibility | Salaried employees (EPFO members) | Any Indian resident | 18–70 years (Indian citizens) |
| Returns | ~8.25% (Declared annually by Govt) |
~7.1% (Quarterly fixed rate) |
~9–12% (Market-linked equity + debt) |
| Employer Contribution | 12% employer match | No employer contribution |
Government: Mandatory employer contribution Private sector: Optional (corporate NPS) |
| Lock-in Period |
Until retirement (~58 yrs) Partial withdrawal allowed after 5 yrs |
15 years Extendable in blocks of 5 yrs |
Non-Government: • Normal exit after 15 years of subscription or at age 60, whichever earlier • Premature exit allowed with annuity conditions Government Employees: • Locked until age 60 (retirement) |
| Tax Benefit |
Section 80C (₹1.5L) Employer contribution tax-free |
Section 80C (₹1.5L) |
80C (₹1.5L) + 80CCD(1B) extra ₹50K |
| Withdrawal / Exit |
Full withdrawal at retirement Partial withdrawal allowed |
Partial withdrawal after 7 years Full maturity after 15 years |
Non-Government: • Exit after 15 yrs or age 60 • ≤ ₹8L → 100% lump sum • ₹8–12L → ₹6L lump sum + phased withdrawal • > ₹12L → up to 80% lump sum + ≥20% annuity Government: • Exit only at age 60 • Minimum 40% annuity required |
| Maturity Tax | Tax-free* | Tax-free |
60% lump sum tax-free Annuity income taxable |
| Pension | EPS pension | No pension | Annuity-based pension after retirement |
| Risk Level | Low | Low | Medium (market linked) |
| Calculate Returns | 🧮 Use EPF Calculator | 🧮 Use PPF Calculator | 🧮 Use NPS Calculator |
*Subject to service conditions and prevailing tax laws.
Plan your National Pension System investments using the latest PFRDA exit, withdrawal, and annuity rules.
The National Pension System (NPS) is a government-regulated, market-linked retirement scheme managed by the PFRDA. Investments are allocated across equity, corporate bonds, and government securities to build long-term retirement wealth.
Contribute via monthly SIPs or yearly contributions with full control over amount and frequency. Minimum contribution is ₹500 per month or ₹1,000 per year. Existing NPS subscribers can include their current corpus for accurate exit calculations.
NPS returns depend on market performance and asset allocation. With equity exposure, long-term returns have historically ranged between 8%–12%. Returns are not guaranteed and vary year to year.
Contributions qualify for tax deductions up to ₹2 lakh annually (₹1.5L under Section 80C + ₹50K under Section 80CCD(1B)). Up to 60% of the maturity corpus is tax-free. Any additional withdrawal beyond 60% (where permitted) is taxable as per income slab. Annuity income is fully taxable in the year of receipt.
Non-Government Subscribers:
• Normal exit allowed after 15 years of subscription or age 60, whichever is earlier.
• If corpus ≤ ₹8 lakh → 100% lump sum allowed.
• If corpus ₹8–12 lakh → ₹6 lakh lump sum; balance via SUR / SWP.
• If corpus > ₹12 lakh → Up to 80% lump sum, minimum 20% annuity.
Government Employees:
• Normal exit only at age 60.
• Mandatory minimum 40% annuity.
Individuals can open an NPS account up to age 70.
Subscribers who join after age 60 can exit anytime under
special withdrawal rules:
• If corpus ≤ ₹12 lakh → 100% lump sum withdrawal allowed
• If corpus > ₹12 lakh → minimum 20% annuity purchase required
This makes NPS useful even for late retirement planning.
Under the Corporate NPS model, employers can contribute to an employee’s NPS account.
These contributions qualify for additional tax benefits under Section 80CCD(2).
• Private sector: up to 10% of basic salary + DA
• Government employees: up to 14%
This deduction is over and above the ₹1.5L (80C) and ₹50K (80CCD(1B)) limits,
making NPS one of the most tax-efficient retirement options in India.
Starting early increases flexibility at exit and maximizes equity exposure. Review allocation periodically and use NPS alongside EPF and mutual funds for a balanced, tax-efficient retirement strategy.
The National Pension System (NPS) is a government-backed retirement savings plan regulated by PFRDA, allowing regular investments and post-retirement pension income.
Returns are market-linked, based on your fund manager’s performance and allocation between equity, corporate debt, and government bonds.
Investments are eligible for deductions under Section 80CCD(1) and an additional ₹50,000 under Section 80CCD(1B). Employer contributions also qualify under Section 80CCD(2).
Your pension depends on annuity rate and corpus used. For example, ₹40L corpus at 6% gives ~₹20,000/month.
Partial withdrawals are allowed after 3 years for specific purposes. Exit before completing 15 years of subscription (and before age 60) is treated as premature and generally requires up to 80% of the corpus to be used for annuity, unless the corpus is below ₹5 lakh.