NPS Prosperity Planner (NPP) for Adequacy in Retirement Income Planning: PFRDA
PENSION FUND REGULATION AND DEVELOPMENT AUTHORITY
Circular No. PFRDA/2022/38/FT&DA/03
December 09, 2022
TO,
All stakeholders
Subject: NPS Prosperity Planner (NPP) for Retirement Income Planning Adequacy
PFRDA takes a plethora of initiatives, enablers, empowerment kits and series of digital solutions for wide-scale adoption of NPS for holistic retirement planning of existing and potential subscribers.
2. NPS offers unique tax benefits to its subscribers during accumulation and withdrawal, but its primary purpose is retirement planning. The NPS, due to its profitability and transparency, has all the ingredients to become a partner in prosperity for every individual who wins when they retire from the workforce and no longer earn.
3. The working-age population can build a retirement corpus through the NPS through regular contributions deducted from their earnings and periodic improvement of their contributions according to the increase in their earnings in order to provide them, as well as ‘to his or her spouse a steady stream of income once he or she reaches superannuation or retirement age.
4. As part of Azadi Ka Amrit Mahotsav (AKAM) and in order to assist, empower and sustain subscribers in planning for retirement income adequacy, PFRDA is pleased to provide NPS Prosperity Planner (NPP) to the benefit of subscribers, made available by the CRAs.
5. Through NPP, subscribers would be able to estimate the projected retirement income (annuity) under the annuity options based on their existing contribution under the NPS. NPP provides the tool for higher retirement income through an accelerated contribution plan during the residual period until retirement with due consideration for inflation and the projected cost of living expenses.
6. NPS Prosperity Planner is futuristic and offers personalized retirement planning to subscribers based on their past contributions, expected increase in income in the future and their cost of living. The calculator can thus provide the subscriber with reasonable projections that will help him better plan his retirement in order to ensure an adequate and sustainable retirement income.
This circular is issued to promote and protect the interests of policyholders and to regulate, promote and ensure the orderly growth of the national pension system. Suggestions/improvements regarding NPP are welcome by e-mail to
Digitally signed by K MOHAN GANDHI
Chief General Manager