INCOME TAX7 Sept 2026
Stopped NPS contributions for a few years? Here’s how much your retirement corpus could lose | Mint
Pausing your National Pension System (NPS) contributions doesn't freeze your retirement money. The amount already invested stays in the fund and keeps earning market-linked returns while you take a break. But skipped years shrink your likely final corpus because no new contributions enter. Even a small yearly contribution, as low as ₹1,000, helps keep the habit alive before retirement.
Key Statutory Highlights
- If you stop contributing for a few months or years, money already in your NPS account is not withdrawn and continues to earn market-linked returns that can rise or fall.
- Assuming 12% yearly returns, a 40-year-old contributing ₹10,000 monthly until age 60 could build a corpus of about ₹99,91,476 if they do not pause.
- At exit, corporate subscribers can withdraw up to 80% as a lump sum but must use at least 20% to buy an annuity, while government subscribers can withdraw 60% and must use 40% for an annuity.
Actionable Advice for Taxpayers / Founders:If a financial crunch or job gap is stopping your NPS contributions, check with your pension fund and try to restart with the minimum ₹1,000 annual contribution so your retirement savings stay active.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: