Government-backed retirement savings with lowest costs in India. Get extra ₹50,000 tax deduction under 80CCD(1B), flexible fund choices and a secure pension corpus for life.
Triple tax benefits — the only investment with Section 80C + 80CCD(1B) + employer contribution deduction
| Tax Slab | Annual Income | Saving via 80C (₹1.5L) | Extra NPS 80CCD(1B) | Total Annual Saving |
|---|---|---|---|---|
| 5% Slab | ₹2.5L – ₹5L | ₹7,500 | ₹2,500 | ₹10,000 |
| 20% Slab | ₹5L – ₹10L | ₹30,000 | ₹10,400 | ₹40,400 |
| 30% Slab | Above ₹10L | ₹46,800 | ₹15,600 | ₹62,400 |
A unique combination of tax efficiency, low cost and professional fund management
Additional deduction under Section 80CCD(1B) over and above ₹1.5L under 80C. Maximum tax saving of ₹15,600/year for 30% slab.
Pension fund management charges as low as 0.01% p.a. — among the lowest in the world. More returns stay with you.
Choose allocation between Equity (E), Corporate Bonds (C), Government Securities (G) and Alternatives (A) based on risk appetite.
Select from PFRDA-approved pension fund managers: SBI, LIC, HDFC, ICICI, Kotak, Aditya Birla, UTI and more.
Withdraw up to 25% of your own contributions after 3 years for specific goals: education, housing, critical illness.
NPS is regulated by PFRDA (Pension Fund Regulatory and Development Authority). Government-backed retirement security.
Choose your own mix or let the system auto-allocate based on your age
Invests in large-cap stocks via index/passive approach. Max 75% allocation (reduces after 50). Best for long-term growth.
Historical: 10-14% p.a.High-quality corporate debt instruments. Moderate returns with lower volatility. Good for balanced allocation.
Historical: 8-10% p.a.Central and state government bonds. Safest NPS asset class with guaranteed returns from sovereign bonds.
Historical: 7-9% p.a.REITs, InvITs, CMBS, MBS instruments. Max 5% allocation. Adds diversification with different risk profile.
Historical: 8-11% p.a.Calculate your retirement corpus, monthly pension and tax savings with NPS
How NPS stacks up against popular retirement and tax-saving investments
| Parameter | NPS | PPF | EPF | ELSS |
|---|---|---|---|---|
| Lock-in Period | Till age 60 | 15 years | Till retirement | 3 years |
| Returns (Approx) | 10-12% | 7.1% | 8.25% | 12-18% |
| Tax Deduction | 80C + 80CCD(1B) | 80C only | 80C only | 80C only |
| Extra ₹50K Deduction | Yes ✓ | No | No | No |
| Fund Mgmt Charges | 0.01% | Nil | Nil | 1-2% |
| Withdrawal Flexibility | Limited (partial allowed) | After 7 years | Only on exit/retirement | After 3 years |
| Maturity Tax | 60% tax-free | 100% tax-free | Tax-free (5+ yrs) | 10% LTCG above ₹1L |
| Pension at Retirement | Yes (annuity) | No | No (lumpsum) | No |
| Market Linked | Yes (equity option) | No (fixed rate) | No (fixed rate) | Yes |
Choose from India's most trusted and regulated pension fund managers
| Fund Manager | 1Y Returns (Equity) | 3Y Returns | 5Y Returns | AUM |
|---|---|---|---|---|
| SBISBI Pension Funds | 14.2% | 11.8% | 12.4% | ₹3.2L Cr |
| LICLIC Pension Fund | 13.8% | 11.4% | 11.9% | ₹1.8L Cr |
| HDFCHDFC Pension Fund | 15.1% | 12.6% | 13.1% | ₹1.2L Cr |
| ICICIICICI Pru Pension Fund | 14.7% | 12.2% | 12.8% | ₹1.5L Cr |
| KotakKotak Pension Fund | 14.4% | 11.9% | 12.5% | ₹48K Cr |
| UTIUTI Retirement Solutions | 13.6% | 11.3% | 11.7% | ₹2.1L Cr |
*Equity tier-I scheme returns. Past performance not indicative of future results.
Start your retirement journey in 4 simple steps — fully online in under 20 minutes
Open Tier-I (mandatory) account online via eNPS portal or any Point of Presence (PoP) like banks. Need PAN, Aadhaar, bank details.
Select pension fund manager and asset allocation — Active Choice (you decide %) or Auto Choice (age-based automatic rebalancing).
Contribute any time via net banking, UPI or ECS. Get PRAN (Permanent Retirement Account Number). Download receipts for 80CCD.
Keep contributing. At age 60, withdraw up to 60% tax-free as lumpsum. Use remaining 40% to buy annuity for monthly pension.
Everything you need to know about NPS — from opening an account to retirement withdrawal
NPS (National Pension System) is a government-backed voluntary retirement savings scheme regulated by PFRDA. Any Indian citizen aged 18-70 years (resident or NRI) can open an NPS account. Government and private sector employees as well as self-employed individuals are all eligible.
PRAN (Permanent Retirement Account Number) is a unique 12-digit number assigned to each NPS subscriber. It is portable across jobs, cities and fund managers. Your PRAN stays with you for life and links your contributions, fund choices and retirement corpus.
Section 80CCD(1B) provides an additional deduction of ₹50,000 per year on NPS contributions, over and above the ₹1.5 lakh under Section 80C. This means a 30% slab taxpayer can save an extra ₹15,600 in taxes (₹50,000 × 30% + 4% cess) every year just from this additional NPS benefit.
Tier-I is the mandatory retirement account with restricted withdrawals — minimum contribution ₹500, tax benefits available. Tier-II is a voluntary savings account — no lock-in, no tax benefits (except for government employees), flexible withdrawals. Tier-II requires an active Tier-I account and minimum contribution of ₹250.
Active Choice: You manually decide the percentage allocation across Equity (max 75%), Corporate Bonds, Government Securities and Alternatives. Auto Choice (Lifecycle Fund): Automatically adjusts allocation based on your age — higher equity when young, gradually shifting to bonds as you approach retirement. Three auto choice options: Aggressive (LC-75), Moderate (LC-50), Conservative (LC-25).
At age 60: You can withdraw up to 60% of the corpus as a tax-free lumpsum. The remaining minimum 40% must be used to purchase an annuity (monthly pension) from an IRDAI-approved annuity provider. The monthly pension from annuity is taxable as income.
Yes, with conditions: Partial withdrawal (up to 25% of own contributions) is allowed after 3 years for specific purposes — higher education, marriage of children, construction/purchase of house, treatment of critical illness. Premature exit (before 60) after 10 years: withdraw 20% as lumpsum, use 80% for annuity purchase.
NPS has one of the lowest fund management charges globally — 0.09% to 0.01% per year of AUM. In contrast, mutual fund expense ratios can be 1-2%. Central Recordkeeping Agency charges, custodian fees etc. add marginally. Total cost is still far lower than comparable investment products.
Yes, NRIs can invest in NPS. The account can be opened and contributions can be made from an NRE or NRO account. However, on becoming an OCI (Overseas Citizen of India) or surrendering Indian citizenship, the NPS account is closed and proceeds transferred. NRIs cannot claim 80C/80CCD tax benefits as they are taxed outside India.
Tier-I (mandatory): Minimum ₹500 per contribution, minimum ₹1,000 per year. Tier-II (voluntary): Minimum ₹250 per contribution, minimum ₹250 to activate. There is no maximum limit on contributions, but tax benefits are capped at ₹1.5L (80C) + ₹50K (80CCD(1B)) per year.
From monthly SIPs to HNI strategies — find the right mutual fund product for your goals
Every year you delay NPS costs you lakhs in compounding. Open your NPS account now and secure your future.