Market-linked retirement security. Our 2026 NPS engine calculates your total corpus and lifelong monthly pension based on the power of Tier-I and Tier-II compounding.
Running Pension Simulations...
The National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme. It allows you to build a retirement fund by investing in a mix of Equity (E), Corporate Bonds (C), and Government Securities (G).
In 2026, NPS remains the only tool that offers an additional ₹50,000 tax deduction under Section 80CCD(1B), over and above the ₹1.5 Lakh limit of Section 80C. At maturity, 60% of the corpus is tax-free.
2026 Pension Market Analysis
NPS is a government-backed retirement scheme that allows market-linked investments to build a pension corpus.
Tier-I is a mandatory retirement account with tax benefits and lock-in. Tier-II is a voluntary savings account with no lock-in.
Benefits up to ₹1.5L under 80C and an exclusive ₹50,000 under 80CCD(1B).
Any Indian citizen between 18 and 70 years of age can join NPS.
At 60, you can withdraw 60% as a tax-free lumpsum, but 40% must be used to buy an annuity for a monthly pension.
Yes, you can choose from several PFRDA-registered pension fund managers like LIC, SBI, and HDFC.
Active choice lets you decide your asset mix. Auto choice adjusts the equity exposure based on your age.
Partial withdrawals up to 25% are allowed after 3 years for specific reasons like education or house construction.
Yes, the 60% lumpsum withdrawal is completely tax-free in 2026.
An annuity is a financial product that provides a guaranteed monthly income for life in exchange for your 40% corpus.
Yes, the monthly pension received from the annuity is taxable as per your income tax slab.
In the Active choice, you can invest up to 75% of your corpus in Equity (Asset Class E).
Permanent Retirement Account Number (PRAN) is a unique 12-digit number assigned to every NPS subscriber.
Yes, you can change your pension fund manager once a year and your asset allocation twice a year.
The account becomes 'frozen.' You can unfreeze it by paying a small penalty and the minimum annual contribution of ₹1,000.
NPS has higher potential returns due to equity exposure but is market-linked. EPF offers guaranteed interest.
Yes, NRIs can open an NPS account as long as they maintain their Indian citizenship.
For government employees, the contribution is automatically managed in a specific proportion across SBI, LIC, and UTI.
Yes. HQCalc by Shivam Sagar uses the standard PFRDA compounding model for market-linked projections.
Yes. All professional retirement tools on HQCalc are free to use.
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Project your lifelong pension income with market-linked returns