The National Pension System (NPS) is a savings scheme launched by the Government of India for all Indian Citizens. This scheme allows you to build a corpus to provide financial stability to all Indian Citizens post-retirement. The Post Office NPS Calculator is an online tool that can help you estimate the potential returns from the National Pension Scheme (NPS). It simplifies retirement planning, making it accessible and efficient for everyone.
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Your Age
Monthly Investment
Expected Return on Investment
Percentage of Corpus Allocated for Pension
Expected Return from Pension
The PFRDA (Pension Fund Regulatory and Development Authority) has authorized all the Head Post Offices in India to act as one of their (PoP) Points of Presence for the National Pension Scheme (NPS). Post Offices offer an offline investment process for the NPS (National Pension Scheme). All you have to do is visit the nearest head post office and fill in the necessary documents.
The National Pension Scheme Calculator is an easy -to-use and hassle-free online tool that helps you to calculate the lump sum amount to be received at the end of the tenure by entering a few basic details related to the NPS scheme.
Provides an estimate of the total corpus at retirement.
Projects monthly pension amounts based on annuity options.
Easy-to-use interface for quick calculations.
Therefore, a few important details needed at the time of calculation of National Pension Scheme Post Office are as follows:
National Pension Scheme holder's current age
Choice of NPS option (Auto or Active choice)
Amount to be invested
Investment type to be made (that is, monthly or yearly)
Suppose,
Sunil's age is 34 years old;
His contributions to NPS in the Post Office are Rs. 3,000 per month;
If the Rate of Interest (ROI) is 10% annually,
He adds the pension amount for the remaining 26 years of his retirement.
As per the Post Office Pension Scheme Calculator Formula,
The total principal amount invested till the age of retirement= Rs.9.36 lakh (approx.)
Interest earned till maturity time= Rs. 34.99 lakh (approx.)
Total sum to be received at the time of maturity= Rs.44.35 lakh (approx.)
Now, the minimum annuity investment Sunil can make= 40% of maturity amount
= 40% of Rs. 44.35 lakh
= Rs. 17.74 lakh
There are several benefits to the National Pension Scheme (NPS) offered through the Post Office, and you can use online calculators to estimate how much you might accumulate for retirement.
Helps Plan Retirement Savings: The Post Office pension scheme calculator provides clear projections of how much to save each month for a secure retirement.
Estimates Potential Retirement Income: It shows a potential monthly pension based on your savings and investment choices.
Helps in Investment Decisions: The National Pension Scheme Post Office lets you see how different factors like contribution amount, investment return, and retirement age affect your total corpus. This can help you make informed decisions about your NPS investment strategy and choose the best investment options for your retirement goals.
Flexibility: The Policybazaar NPS Calculator for Post Office allows you to choose between two approaches:
Target corpus calculation: See how much monthly investment you need to reach a desired retirement corpus.
Future corpus estimation: Estimate your total corpus based on your current investment plan.
You can follow the steps mentioned below to make the best use of a Post Office NPS Calculator:
Step 1: Go to the online National Pension Scheme Post Office Calculator available on this page.
Step 2: Insert the following details in the Post Office pension scheme calculator:
Your current age in years
Amount you are willing to invest in the National Pension Scheme every month
Expected rate of return on your investments (This is an estimate; actual returns may vary).
Percentage of the accumulated corpus that you want to allocate for receiving a pension in the future (This will determine how much of your savings go towards a lump sum payout and how much goes towards a monthly pension).
Expected rate of return for the pension phase (This is an estimate of how much your pension amount might grow after retirement).
Step 3: The NPS calculator- Post Office will show you the estimated monthly pension, lump sum amount, and total pension wealth.
The following are the eligibility criteria for this government-backed post office pension scheme:
An NPS account is operational for citizens residing in India only
18 years is the minimum age criteria for opening National Pension Scheme Post Office Account
65 years is the maximum age criteria for opening a National Pension Scheme Post Office Account
The applicant is not allowed to own more than 1 NPS account
KYC Compliance is compulsory before applying for an NPS account
The following steps need to be implied in case an individual wishes to invest in the Post Office National Pension Scheme:
Visit https://npscra.nsdl.co.in/pop-sp.php website
Enter your location and the state that you reside in
A page of the nearest Head Post Offices listed under the POP (Point of Presence) list by the PFRDA will appear that accepts offline registration of NPS forms.
Visit the nearest branch for further process
Visit the nearest POP Post Office branch
Ask for the National Pension Scheme subscribers' form
Fill in all the relevant details in the form
The subscriber's form can also be downloaded online from here
Submit all the necessary documents for KYC, like,
Aadhaar card
PAN Card
Name
Age proof
Address proof
Photograph, etc.
Deposit the minimum account for the desired account type
Once the registration process is complete, now you can access the Post Office NPS Account
PRAN (Permanent Retirement Account Number) is generated after the registration process is completed
Some of the top benefits offered under the National Pension Scheme (NPS) are listed below:
Portability: You can easily transfer your NPS account online when switching jobs or relocating to India.
Liquidity: You can avail of the fund liquidity benefits with a PRAN (Permanent Retirement Account Number).
Tier-I Account: Minimum contribution of Rs.500, with specific withdrawal conditions.
Tier-II Account: Minimum contribution Rs.250, requires active Tier-I account, offers easy investments and withdrawals.
Tax Benefit:
Income Tax Act 1961 | Tax Benefits |
U/S 80CCD (1) | Deduct up to Rs.1.5 lakh for Tier-I investment. |
U/S 80CCD 1(B) | Additional deduction up to Rs.50,000 for Tier-I investment. |
U/S 80CCD (2) | Deductions up to 14% for central government employees and 10% for others on Tier-I investment. |
Flexibility:
The National Pension Scheme works as per the general requirement of the employees in India and hence is considered to be very flexible. The following choices of investment are offered under the National Pension Scheme account:
Auto Choice: Default option, allocates assets based on age-customizable proportions.
Active Choice: Allocate assets among corporate bonds, equity (up to 75%), and government securities, with flexible switching options.
The Post Office NPS (National Pension System) Calculator is a valuable tool for you to plan your retirement. It helps you to estimate your potential pension and corpus based on contributions, investment duration, and expected returns. By providing a clear projection of future financial security, the calculator assists in informed decision-making, ensuring a well-planned and financially stable retirement.
Parameters | NPS | PPF |
Rate of Interest | 12% to 14% | 7.1% currently |
Maturity Age | 60 years to 70 years | At the time of retirement |
Tax benefits | Tax exemption up to Rs. 1,50,000 | Tax exemption up to Rs. 1,50,000 |
Investment Amount | Rs. 6,000 minimum | Rs. 500 minimum Rs. 1,50,000 maximum |
Withdrawals | At the age of 60, 60% of the total amount can be withdrawn, whereas 40% of the amount must be used to purchase the annuity. | Partial withdrawals can be made after the completion of 7 years |
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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