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What is National Pension System (NPS)?
- A government sponsored retirement savings scheme
- Regulated by Pension Fund Regulatory & Development Authority (PFRDA)
- Allows regular contribution to a pension fund during working life
- Subscribers choose from Equity and Fixed Income funds to grow savings
- On retirement, a part of the corpus can be withdrawn in lumpsum
- Remaining corpus is invested in an annuity plan to secure regular income
Types of NPS Account
Tier I - Tax Saving Account
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Tier-l account mandatory to join NPS
Investment is locked-in until the age of 60
Withdrawals are conditional
Tax benefits can be claimed
Tier II - Any Time Withdraw
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Only Tier-I account holders can open it
No lock-in period on investment
Flexible withdrawal & exit rules
No tax exemptions on contributions
How NPS Works
Subscribers Death
Nominee/Legal heir
gets corpus
Current Age
Accumulation Phase
Open NPS Account
Retirement Age 60 Years
60%
Withdrawal + 40%
Annuity Plan
Withdrawal Phase
Starts getting pension
Features and Benefits
Regulated
By Pension Fund Regulatory & Development Authority (PFRDA)
Low Cost
Fund Management fees of less than 0.09% p.a.
Flexibility
Invest in asset classes and pension funds of your choice
Attractive Returns
With a mix of Equity, Debt & Alternates
Portable
Transfer NPS account across employers & location
Tax Savings
On Investment, Capital gain & Withdrawals
Government Securities
Low
Upto 100%
100
green
Corporate Bonds
Moderate
Upto 100%
100
yellow
Equities
High
Upto 75%
75
blue
Tax Benefits
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true
fourCol
Category
Under Section
Investment Limit in Old Tax Regime
Investment Limit in New Tax Regime
Self-Contribution
80 CCD (1)
₹1,50,000
Not Applicable
Self-Contribution
80 CCD (1B)
₹50,000
Not Applicable
Employer Contribution
80 CCD (2)
10% of Basic Salary*
14% of Basic Salary*
*Employer Contribution to NPS account qualifies for deduction u/s 80 CCD (2). Permissible limit is 10% of basic salary for employees in old tax regime and 14% of basic salary for employees in new tax regime. Please note that employer’s contribution to NPS, EPF and/or Superannuation upto Rs. ₹7.5 lakhs p.a. cumulatively, is eligible for tax deduction; excess amount will be taxed as perquisite in the hands of the employee.
Auto Choice
Aggressive,Moderate,Conservation
aggressive,moderate,conservation
aggressive
View Details
high-risk
Indicative Returns (p.a.)
11.39%-12.46%
Indicative Value at Maturity*
₹1.72 Cr - ₹2.17 Cr
24 Year,36 Year,42Year,60 Year
moderate
View Details
medium-risk
Indicative Returns (p.a.)
10.24%-11.19%
Indicative Value at Maturity*
₹1.5 Cr - ₹1.87 Cr
24 Year,36 Year,42 Year,60 Year
conservation
View Details
low-risk
Indicative Returns (p.a.)
9.07%-9.92%
Indicative Value at Maturity*
₹1.26 Cr - ₹1.53 Cr
24 Year,36 Year,42 Year,60 Year
* Indicative return represents the average returns across PFMs considering 7 - 10 Years returns. Indicative Value at Maturity considered for an investment of ₹10,000 per month for 25 years
Exit & Withdrawal
Exit at Maturity (60 years)
- Up to 60% of corpus can be withdrawn Tax-Free
- Minimum 40% to be invested in annuity for monthly pension
- If corpus ≤ to Rs. 5 lakhs, withdrawal of full amount is permitted
Exit on Death
- On death 100% of the pension wealth amount will be payable to the nominee / legal heir of the subscriber
- There would not be any purchase of annuity / monthly pension
Pre-Mature Exit
- Permitted only after 5 years of participation
- Up to 20% of corpus can be withdrawn Tax-Free
- Minimum 80% to be invested in annuity for monthly pension
- If corpus ≤Rs. 2.5 lakhs, withdrawal of full amount is permitted
Partial Withdrawal
- Up to 25% of the contributions deposited can be withdrawn
- In the entire life span, up to 3 withdrawals can be made
- 1st withdrawal can be exercised 3 yrs after a/c opening
- 2nd & 3rd withdrawal can be exercised anytime after previous one
NPS Calculator
nps-calculator
Investment Amount
Est. returns
Total Investment
Indicative Gain
Indicative Retirement Corpus
Lumpsum Withdrawal at Retirement
Corpus Invested for Pension
Monthly Pension
Please note: Subscribers will be able to know how tentative pension and lumpsum amount may be expected on retirement at 60 years basis regular monthly contributions to NPS account. A percentage of the corpus on retirement is used for purchasing annuity. Subscribers are required to key in the assumed rate of return on their investment and that for annuity to compute monthly pension. The above calculation and illustration of figures are indicative only and not on actual basis.
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NPS is regulated by Pension Fund Regulatory and Development Authority (PFRDA). ICICI Securities Limited is a PFRDA registered POP with Reg. no.: 05092018. ICICI Securities is just acting as distributor and all disputes with respect to such distribution activity, would not have access to SCORES/ODR, Exchange investor redressal forum or Arbitration mechanism.
*Please note Brokerage would not exceed the SEBI prescribed limit.