What is National Pension System (NPS)?
NPS is a voluntary retirement savings scheme introduced by the Government of India to help citizens build a retirement corpus. It offers tax benefits under Section 80C and an exclusive additional deduction of ₹50,000 under Section 80CCD(1B).
How does withdrawal work in NPS?
- At retirement (age 60), you can withdraw up to 60% of your total corpus as a tax-free lumpsum.
- The remaining 40% (minimum) must be used to purchase an annuity to receive a regular monthly pension.
Related Tools & Learn More
- PPF Calculator – Compare with PPF returns
- Retirement Calculator – Plan your overall retirement
- SIP Calculator – Calculate mutual fund returns
- Systems Approach to Wealth – Automate your retirement savings