There is no single post office retirement scheme that pays a lifelong pension; instead, retirees combine the Senior Citizen Savings Scheme, which pays 8.2% every quarter, with the Monthly Income Scheme, which pays 7.4% every month, to create a steady income. Younger savers can also open the National Pension System through a post office to build a pension before retiring.
This page shows how these pieces fit together, with sample plans, and how to plan retirement savings with post office schemes.
At a glance
Main income scheme, 60+
SCSS 8.2%, quarterlyMonthly top up
MIS 7.4%, monthlyBefore retirement
PPF and NPSLifelong pension
Not offered by post office depositsTax
Interest taxable; Form 15H if no tax
Post office retirement scheme: the building blocks
Sample retirement income plans
Single retiree, ₹30 lakh: ₹21 lakh in SCSS pays ₹43,050 a quarter; ₹9 lakh in MIS pays ₹5,550 a month. Total income averages about ₹19,900 a month, with the full ₹30 lakh returned after five years.
Couple, both over 60, ₹45 lakh: ₹20 lakh SCSS each (₹82,000 a quarter together) plus ₹5 lakh in a joint MIS (₹3,083 a month). Average income about ₹30,400 a month.
Try other mixes with the SCSS calculator and the MIS calculator.
How to plan for retirement savings with post office schemes
- Twenty years out: PPF for tax free growth; extend it past 15 years.
- Ten years out: park spare lump sums in NSC or KVP.
- At retirement: move money into SCSS (within one month if retiring before 60) and MIS.
- Every five years: renew SCSS and MIS at the rate then in force.
A deposit based plan protects capital but may not keep pace with rising costs over 25 years. Many retirees keep some long term money in growth assets with an adviser's help.
Best pension scheme in post office for different retirees
A retired government employee with a pension already may only need SCSS to top up. A private sector retiree with no pension usually needs SCSS plus MIS to cover monthly costs. A self employed person retiring with irregular savings may want a larger buffer in a 1 year TD before locking money for five years. The best pension scheme in post office terms is whichever mix covers your monthly gap with the least money locked away.
NPS and APY through the post office
Many post offices serve as points of presence for the National Pension System, a market linked account under PFRDA, and sign savers up for the Atal Pension Yojana via their post office savings account. These build a pension during working years and pay an annuity after retirement. They are different from post office deposits: returns are not fixed, and rules on withdrawal are stricter. Details are on pfrda.org.in.
Post office pension scheme calculator and chart questions
People ask for a post office pension scheme calculator or chart. Since the pension comes from SCSS and MIS, use those calculators: income per month equals SCSS quarterly interest divided by three, plus MIS monthly interest. A quick chart at current rates: each ₹1 lakh in SCSS adds about ₹683 a month on average; each ₹1 lakh in MIS adds about ₹617.
Common retirement mistakes
- Missing the one month window for SCSS when retiring before 60.
- Putting everything in five year schemes with no emergency money.
- Ignoring tax and TDS, then waiting for refunds.
- Not adding a nominee on every account.
For the full SCSS conditions see SCSS rules, and for FD choices FDs for seniors.
Frequently asked questions
Is there a pension scheme in the post office?
Not as a single deposit product. Retirees use SCSS and MIS for income, and the post office also enrols people in NPS.
Which post office scheme is best for retirement?
From 60, SCSS first, topped up with MIS for monthly cash.
How much pension can I get from ₹10 lakh in the post office?
In SCSS, ₹20,500 a quarter, about ₹6,833 a month on average.
Can I get a monthly pension from SCSS?
SCSS pays quarterly. Monthly money needs either MIS alongside or a standing monthly transfer.
Is NPS available at the post office?
Yes. Many post offices are points of presence for NPS.