from age 60 · ₹10,000 / month contributed · 10% return · 6.5% annuity
Corpus at retirement
total corpus at age 60 · from ₹36.0 L contributed over 30 years
60% tax-free lump sum · yours to redeploy however you like (SWP, safe bucket, whatever)
The annuity math
gross monthly annuity · from ₹91.2 L mandatorily used to buy the annuity (40%)
after 30% (incl. cess) · annuity income is taxed at your slab, unlike the tax-free lump sum
Corpus over time
Explained
The National Pension System is EEE-adjacent but with an important catch: at 60, PFRDA rules force you to use at least 40% of the corpus to buy an annuity from an approved insurer, and that annuity income is taxable at your slab. Only the lump-sum portion (up to 60%) is tax-free. The post-tax effective yield of the annuity portion — 4.47% in this projection — is often lower than you'd get by running an SWP on an equity fund with the same 40%.