Want ₹80,000 a month after 60? This NPS hack is helping one retiree get there tax-free

Can you really draw ₹80,000 a month, largely tax-free—after retirement, without relying on high-risk investments? According to a case study by wealth advisory firm TheFynprint, one retired engineer from Vadodara is doing exactly that, using a smart mix of the National Pension System’s (NPS) most underused feature: Systematic Lump-sum Withdrawal (SLW).

Ajay Agarwal, a 60-year-old retired ONGC engineer who turned his ₹1.2 crore retirement corpus into a disciplined, tax-efficient income stream by leveraging the post-retirement flexibility of NPS.

While most retirees withdraw their corpus or lock funds into fixed deposits, Ajay took a different route. After transferring his entire PRBS (Post Retirement Benefit Scheme) corpus into NPS in 2020, he continued contributing for five years and built a structured post-retirement plan designed to deliver ₹90,000 per month, with ₹50,000 drawn from SLW starting in 2026 and ₹40,000 from a joint-life annuity.

TheFynprint, which documented his strategy, highlights how SLW lets retirees withdraw the 60% non-annuity portion of their NPS corpus in phased intervals until age 75, while the balance keeps compounding—largely tax-free. Ajay opted for a 6% annual step-up on SLW, allowing his monthly draw to rise gradually over the years. Meanwhile, his corpus is invested 90% in debt and 10% in equity, targeting an annual return of around 9%.

Crucially, his monthly income is diversified:

• 40% from SLW (tax-free withdrawals)
• 30% from annuity (6.79% p.a. joint-life with RoP)
• 30% from other sources like SCSS, bank deposits, and mutual funds

“I wanted control, low cost, and predictability. NPS gave me that,” says Ajay, who manages his income to stay under the ₹12 lakh tax bracket.

Despite being overlooked by most financial planners—largely due to zero commissions—NPS has become central to Ajay’s retirement strategy. His son, after seeing the results, has also opted into corporate NPS.

While taxation of growth on SLW remains a grey area, the structure offers flexibility, compounding, and control—a trifecta few retirement tools match. And for those aiming to build a ₹75,000–₹80,000 monthly retirement income, Ajay’s plan offers a practical, low-risk playbook.