Finance Calculators
EPF & NPS at Retirement
An explainer, plus a small calculator, for what happens to your EPF and NPS balances when you retire.
Part of the Retirement journey · step 7 of 7 · See the full map →
Frequently Asked Questions
- NPS lump sum vs annuity — what are the current rules? (last reviewed 2026-07-22)
- For non-government subscribers, per PFRDA rules most recently revised in December 2025: a corpus of ₹8 lakh or less can be withdrawn entirely as a lump sum; between ₹8-12 lakh, up to ₹6 lakh can be taken as a lump sum with the remainder paid out via systematic redemption over at least 6 years; above ₹12 lakh, 80% can be taken as a lump sum and the remaining 20% must go into an annuity. Central government employees follow the older, unchanged rule: 60% lump sum, 40% mandatory annuity. These thresholds and percentages have changed before and can change again — verify the current rules directly with PFRDA or your NPS provider before making a decision.
- Is the NPS lump sum taxed?
- The lump-sum portion is generally tax-free up to the limits set by current income tax rules; the annuity income you later receive is taxed as regular income in the year you receive it. Tax rules change independently of PFRDA's withdrawal rules, so confirm the current position with a tax advisor.
- What happens to my EPF balance at retirement? (last reviewed 2026-07-22)
- Your EPF balance (your contributions, your employer's contributions, and the interest earned) is available for full withdrawal at retirement. The specific retirement age for full withdrawal has been subject to recent regulatory change (some sources cite 55, others the older age of 58 under EPFO's 2026 framework) — confirm your exact eligibility age directly with EPFO. Separately, your EPS (pension) balance depends on years of service: under 10 years lets you withdraw it as a lump sum; 10 years or more converts it into a monthly pension instead of a lump sum.
- Why does this tool only calculate the NPS split, not EPF or EPS amounts?
- EPF withdrawal at retirement is simply your full balance — there's no split to calculate. EPS pays a monthly pension determined by a separate government formula based on salary and service history, which this tool doesn't attempt to reproduce. NPS is the one with a genuine lump-sum-vs-annuity decision worth calculating.