NPS in 2026: What It Pays, What It Saves You in Tax

NPS in 2026 still offers up to ₹2 lakh in deductions, but the extra ₹50,000 under 80CCD(1B) works only in the old regime.

The one NPS break that survives in the new regime is the employer's 80CCD(2) contribution, now up to 14% of Basic+DA.

Long-run NPS equity funds have returned around 11% over five years, but returns are market-linked, not guaranteed.

At 60 you can take up to 60% as a tax-free lump sum; at least 40% must buy an annuity, and that pension is taxable.

From January 2026, POP charges shifted to a 0.2% AUM model or a flat ₹200 first-year fee.