NPS Retirement Rules (2025):
- Minimum Investment: ₹500/month for Tier I account[2]
- Current Returns: 9-12% p.a. based on asset allocation[12][15]
- Annuity Rates: 5.5% to 7.5% p.a. (March 2025: 7.31%)[6][9]
- Mandatory Annuity: Minimum 40% at retirement[2]
- Tax-Free Withdrawal: 60% of corpus exempt from tax[9]
- Retirement Age: Exit allowed between 60-70 years[7]
Monthly Pension
₹25,847
NPS Benefits
- Lifetime monthly pension guaranteed
- 60% corpus tax-free at retirement
- Professional fund management
- Portability across jobs & locations
- Market-linked returns potential
Investment Strategy
- Higher equity allocation in younger age
- Gradual shift to debt near retirement
- Auto choice vs active choice options
- Regular monitoring and rebalancing
- Consider employer contribution matching
