HDFC Pension Plan Calculator

Pension plan is a significant scheme to avail a regular income post retirement by investing a part of one’s income.

With HDFC Pension Plan calculator, you can calculate how much money you need to spend your life comfortably post retirement without any financial crisis.

Need for the Use of Pension Plan Calculator

There could be some inadequacies when someone calculates income plan post retirement  such as-, poor investment returns due to miscalculation and underfunded, even the complexities and cost effectiveness of a pension plan are difficult to manage, complicacy in the estimation of liabilities in a pension plan may cause errors which is why HDFC pension plan brings forth a more strategically designed tool for pension calculation which provides a hassle free and more effective process to their customers.

HDFC life offers numerous options for their customers in regards to their needs, as- HDFC Life Guaranteed pension plan, HDFC pension guaranteed plan, HDFC Life personal pension plus, HDFC Life New Immediate Annuity plan, HDFC Life Assured Pension plan (ULIP).

How to Use HDFC Pension Plan Calculator?

In HDFC Life website, one can fill in a Retirement Pension plan premium calculator online.

1. Basic details

   The customer has to provide basic information as name, last name, date of birth, contact number, gender. It is also mandatory to provide information on personal habits as- smoking. One has to give consent to be contacted over the personal email, contact number, SMS or any other medium by the company. There is an option for suitability analysis which makes recommendations of various plans based upon the customer’s investment goal, marital status, risk appetite level, age group, and annual income. One can tick the check box to avoid these recommendations but in that case opting for a plan would depend on one’s independent analysis.

2. Information on investment goal

   In this section one is required to give details on his investment goals as to where one wants to invest money whether on child education, retirement, spouse benefit or future savings. The sections of filling in the premium amount and frequency of payment need to be done after a thorough understanding and deep analysis so as not to fall into any financial miscalculation.

3. Plan option

   Plan option gives information on Sum assured on the investment amount. The selection of policy term needs to be done with full care, depending upon the years of service left; you should choose Premium Paying term.

   People also read: HDFC Life Midcap Momentum Fund 2024

4. Investment Strategy

   Investment Strategy gives you the option to choose either Self-Managed plan where you can decide % of amount allocation to various policies and funds on your own or you can choose Systematic Transfer Plan where you can invest a part in source fund then move it to equity funds.

   In a Self-Managed Plan you can decide the risk level; it could be low to high based upon your risk appetite. Some suggestions will be given upon fund allocation which can be switched any time. 

Try our SIP Calculator to complement your SIP strategy.

Advantage of HDFC Pension Plan Calculator

1. Better Planning Options

   Reading through brochures and coming across innumerable information from various sources may baffle one’s mind but with a pension plan calculator one can fill in required information and find the best suitable option to choose.

2. Chance to do comparative analysis

   One can do a comparative study about different pension plans online after filling out the premium amount and the Sum assured, the premium amount needs to be chosen with careful consideration of different aspects.  The time duration and frequency of payment can also be taken into account that helps one prepare for the payment of a specific amount in a certain period of time. 

3. Time saving

   It is often intriguing for people to go deep into the nuances of mathematics and lengthy calculations as it is time consuming but with this tool one can figure out investments and returns within minutes.

4. Provides financial clarity

   Opting for a pension plan depends upon one’s choice of lifestyle after retirement, how much expense one will bear. It gets one to start thinking whether he should be managing his financial state from now. Keeping this in mind when specific information and amount is put on the calculator, it gives you a clear picture of your financial support after retirement.

5. Cost-free tool

   HDFC Pension plan calculator is an online and totally free of cost tool. One major advantage is that it is available any time at the customer’s convenience. After all inputs done by the customer, it presents error free and accurate calculations within seconds.

People also read: NPS Calculator

How HDFC Pension Plan Benefit People

1. Guaranteed income

   Having a suitable pension plan assures a regular income post retirement that means one can avail all necessities without compromising on his cost of living. This is guaranteed money at the time of any unfortunate event and one doesn’t have to give a second thought to spend money. However, the sooner you start investing money, the better amount and tax benefit you get. HDFC Life Guaranteed Pension plan assures limited premium paying term with benefits on death or at vesting and there is option for Return of Purchase price on death.  

2. Tax benefit

   With considerable tax savings, one can have a significant amount of money to resume the same life after retirement. Under section 80 CCC of Income Tax Act 1961, an annual deduction is made on the total income of up to Rs. 1.5 lakh and with some terms and conditions applied up to one third of retirement savings can be availed as a tax free lump-sum under section 10(10A) of Income Tax Act 1061.

3. Independent Life

   Pension plans for retirement are a good source of income, even when one has successfully carried out all responsibilities such as child’s wedding, education, payment of home loans etc. Children may offer financial support to parents after retirement but they also have their own commitments to fulfil, therefore being financially independent in old age brings greater comfort and peace in life.

4. Scarce funds savings

   During the period of employment, one may have to face some inevitable expenses like child’s marriage, education fee or any medical emergency where withdrawing money from a PF account becomes necessary. Also the retirement age is constantly increasing which means there will not be much amount left in PF and gratuity after retirement. In these cases, having a pension plan is a massive relief on a financial side.

5. Invest small and avail sizeable amount

   People have the option to pay a premium periodically or a lump sum amount at one go. The small investment one does over a period of time turns out to be a substantial corpus; it means one doesn’t have to cut down on his needs and expenses. Investing a small amount wouldn’t make a massive difference in his present lifestyle.

6. Financial security for the family

   Opting for a beneficial plan and annuity with life cover helps one’s family during difficult times. HDFC Life New Immediate Annuity plan offers higher annuity rates at the investment of Rs 2,50,000. It promises guaranteed income according to policy holder’s choice- monthly, half yearly, quarterly or annually.

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