NPS (National Pension System) Calculator

Rules, opening & closing

How to open, how to close, premature withdrawal rules, and main regulations for this scheme.

How to open an NPS account?

You can open NPS online at enps.nsdl.com or through a bank/POP (Point of Presence). Visit the NPS portal, complete KYC (Aadhaar or PAN), choose a Pension Fund Manager (PFM) and allocation (equity, debt, government), and make the initial contribution (min ₹500 for Tier I, ₹250 for Tier II). PRAN (Permanent Retirement Account Number) is issued. You can also join through your employer if they offer NPS.

How to close or withdraw at maturity (age 60)?

At 60, you must use at least 40% of the corpus to buy an annuity (pension); the rest (up to 60%) can be withdrawn as a lump sum (tax-free). To exit, submit the withdrawal form to your Nodal Office/POP or online. Withdrawal before 60 is allowed only in specific cases (e.g. partial withdrawal for illness, children’s education, house purchase, or full exit if corpus is below a threshold).

Can I close or withdraw prematurely? What are the rules?

Tier I: Premature exit before 60 is allowed only under certain conditions. If you exit before 60, 80% of the corpus must be used to buy an annuity and 20% can be withdrawn. Partial withdrawals (up to 25% of own contribution) are allowed after 3 years for specified purposes (illness, children’s education, house purchase). Tier II has no lock-in; you can withdraw anytime. Exit before 60 due to death is paid to the nominee.

What are the main rules and regulations?

Tier I is mandatory for government employees; voluntary for others. Minimum annual contribution Tier I ₹1,000; Tier II ₹250. You can choose allocation across equity (max 75% till 50 years), debt, and government securities. PFM can be changed once per financial year. At 60, 40% must go to annuity, 60% lump sum tax-free. Withdrawal before 60 has annuity and tax implications. PFRDA regulates NPS.

Who is eligible and what documents are needed?

Indian citizens aged 18–70 can join. Documents: Aadhaar or PAN, proof of address, photograph, and bank account details. For government employees, subscription is deducted from salary. For others, contributions are voluntary and can be made via the NPS portal or through POPs.