Post Office NPS Calculator 2024

What is a Post Office NPS?

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.

What is a Post Office NPS Calculator?

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.

Features of NPS Calculator- Post Office:

• 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)

Illustration of Post Office NPS Calculator

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

Benefits of National Pension Scheme- Post Office Calculator

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.

Benefits of Post Office NPS Calculator:

• 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.

Steps to Use NPS Calculator Post Office

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.

Eligibility Criteria for Post Office National Pension Scheme

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

Steps to Invest in Post Office NPS Account

The following steps need to be implied in case an individual wishes to invest in the Post Office National Pension Scheme:

1. To Find the Nearest Head Post Office

   • 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

2. Registration Process for Post Office NPS

   • 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

Benefits of Post Office National Pension Scheme Account

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.

In The End!

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.