NPS Retirement Corpus Summary

Monthly NPS Contribution ₹2,000
Expected Annual Returns 10% p.a.
Start Age 25
Retirement Age 60
Investment Period 35 years (420 months)
Total Amount Invested ₹8,40,000
Wealth Gained ₹68,16,553
Total NPS Corpus ₹76,56,553
Lump Sum (60% — Tax-Free) ₹45,93,932
Annuity Fund (40% — Mandatory) ₹30,62,621

Monthly Pension Estimate: The ₹30,62,621 annuity fund at 6% annuity rate gives approximately ₹15,313/month pension for life.

Impact of Starting Age on NPS Corpus

Starting just 5 years earlier makes a dramatic difference:

Start Age Years of Contribution Total Invested Corpus at 60 Lump Sum at 60
Start at 25 35 years ₹8,40,000 ₹76,56,553 ₹45,93,932
Start at 30 30 years ₹7,20,000 ₹45,58,651 ₹27,35,191
Start at 35 25 years ₹6,00,000 ₹26,75,781 ₹16,05,469
Start at 40 20 years ₹4,80,000 ₹15,31,394 ₹9,18,836
Start at 45 15 years ₹3,60,000 ₹8,35,849 ₹5,01,509

NPS Growth Milestones

Age Years Contributed Total Invested NPS Value
Age 30 5 years ₹1,20,000 ₹1,56,165
Age 35 10 years ₹2,40,000 ₹4,13,104
Age 40 15 years ₹3,60,000 ₹8,35,849
Age 45 20 years ₹4,80,000 ₹15,31,394
Age 50 25 years ₹6,00,000 ₹26,75,781
Age 55 30 years ₹7,20,000 ₹45,58,651
Age 60 35 years ₹8,40,000 ₹76,56,553

Plan Your NPS Retirement

Adjust monthly contribution, start age, and expected returns to see your personalised retirement corpus.

Use NPS Calculator

Frequently Asked Questions

How much NPS corpus will I build with ₹2,000/month from age 25?

Contributing ₹2,000/month from age 25 to 60 (35 years) at 10% returns builds a corpus of ₹76,56,553. You can withdraw ₹45,93,932 as a tax-free lump sum and use ₹30,62,621 to buy an annuity for monthly pension.

How much monthly pension will I get from NPS?

The ₹30,62,621 annuity fund (40% of corpus) typically generates ₹15,313–₹17,865/month at current annuity rates of 6–7% p.a. This is taxable income after retirement.

What is the tax benefit of NPS in India?

NPS offers three layers of tax deduction: (1) ₹1.5L under Section 80C as part of the combined limit, (2) Additional ₹50,000 under Section 80CCD(1B) — exclusively for NPS, over and above 80C, (3) Up to 10% of basic salary contributed by employer under 80CCD(2) is fully deductible.

What happens if I exit NPS before retirement?

If you exit NPS before age 60, you must use 80% of the corpus to buy an annuity (only 20% as lump sum). After age 60, the ratio flips: 60% lump sum (tax-free), 40% mandatory annuity. Partial premature withdrawals (up to 25% of own contributions) are allowed after 3 years for specific purposes.

Should I increase NPS contribution as salary grows?

Yes. Even a 10% annual increase in your ₹2,000 contribution (step-up) could grow your corpus to ₹1,14,84,830+ — a 50% boost. The power of compounding amplifies every additional rupee you invest in your early working years.

Related NPS Scenarios