NPS Retirement Corpus Summary

Monthly NPS Contribution ₹5,000
Expected Annual Returns 10% p.a.
Start Age 25
Retirement Age 60
Investment Period 35 years (420 months)
Total Amount Invested ₹21,00,000
Wealth Gained ₹1,70,41,384
Total NPS Corpus ₹1,91,41,384
Lump Sum (60% — Tax-Free) ₹1,14,84,830
Annuity Fund (40% — Mandatory) ₹76,56,554

Monthly Pension Estimate: The ₹76,56,554 annuity fund at 6% annuity rate gives approximately ₹38,283/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 ₹21,00,000 ₹1,91,41,384 ₹1,14,84,830
Start at 30 30 years ₹18,00,000 ₹1,13,96,627 ₹68,37,976
Start at 35 25 years ₹15,00,000 ₹66,89,452 ₹40,13,671
Start at 40 20 years ₹12,00,000 ₹38,28,485 ₹22,97,091
Start at 45 15 years ₹9,00,000 ₹20,89,621 ₹12,53,773

NPS Growth Milestones

Age Years Contributed Total Invested NPS Value
Age 30 5 years ₹3,00,000 ₹3,90,412
Age 35 10 years ₹6,00,000 ₹10,32,760
Age 40 15 years ₹9,00,000 ₹20,89,621
Age 45 20 years ₹12,00,000 ₹38,28,485
Age 50 25 years ₹15,00,000 ₹66,89,452
Age 55 30 years ₹18,00,000 ₹1,13,96,627
Age 60 35 years ₹21,00,000 ₹1,91,41,384

Plan Your NPS Retirement

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Frequently Asked Questions

How much NPS corpus will I build with ₹5,000/month from age 25?

Contributing ₹5,000/month from age 25 to 60 (35 years) at 10% returns builds a corpus of ₹1,91,41,384. You can withdraw ₹1,14,84,830 as a tax-free lump sum and use ₹76,56,554 to buy an annuity for monthly pension.

How much monthly pension will I get from NPS?

The ₹76,56,554 annuity fund (40% of corpus) typically generates ₹38,283–₹44,663/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 ₹5,000 contribution (step-up) could grow your corpus to ₹2,87,12,076+ — a 50% boost. The power of compounding amplifies every additional rupee you invest in your early working years.

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