"Do not save what is left after spending, but spend what is left after saving."
– Warren Buffett
– Warren Buffett
Estimate the retirement corpus from regular NPS contributions.
Farah, 30, contributes ₹6,000 a month to NPS expecting 10% returns until 60. She contributes ₹21.6 lakh over 30 years and the estimate shows about ₹1.37 crore. After buying a 40% annuity, roughly ₹82 lakh remains withdrawable — and she saves ₹15,000 a year in tax via 80CCD(1B).
Uses monthly compounding on regular contributions. NPS returns are market-linked and the final withdrawal, annuity, tax, and allocation rules are not modeled here.
The result is an educational estimate, not a guaranteed return or personal financial recommendation. Review current product documents and consult a qualified advisor before investing.
NPS is the only investment offering an additional ₹50,000 deduction over the ₹1.5 lakh 80C limit (u/s 80CCD(1B)). At 30% tax bracket, that is ₹15,000 annual tax saved — effectively a 15% instant return on the first ₹50K. Combined with equity exposure (up to 75% till age 50), it is a powerful retirement vehicle. The catch: 40% annuity purchase at 60, and annuity income is taxable.
Choosing "Auto Choice" without understanding the glide path — equity drops to 10% by age 55; you may want more growth. Not using the ₹50K 80CCD(1B) deduction — it is the highest marginal tax-saving investment. Ignoring annuity taxation — 40% corpus must buy an annuity; annuity income is fully taxable at slab rate. Not nominating in both Tier I and Tier II — separate nominations needed.
No. They are educational estimates based on the inputs and assumptions shown on this page.
No. Unless stated otherwise, taxes, fees, charges, and product-specific rules are not included.
Use it to compare scenarios, then verify current product documents and seek qualified advice before making a decision.
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