Input type
Retirement Planning
Annuity Pension Calculator
Calculate pension from an immediate or deferred annuity. Supports single life, joint life, and return-of-purchase-price options.
Immediate & deferred annuity
Joint life option
Return of purchase price
Best for
Annuity product comparison
Output
Annual & monthly pension
Enter annuity details
For return-of-purchase-price, the effective rate is reduced slightly (–0.5%) to reflect the insurer's cost of the guarantee.
Why use this annuity pension calculator?
It helps you compare annuity product options across immediate/deferred, single/joint life, and with/without return-of-purchase-price before committing.
Annuity Planning Guide
An annuity converts a lump sum into a guaranteed income stream for life. In India, life insurance companies and LIC offer various annuity plans with different variants — immediate or deferred, single or joint, with or without return of purchase price.
Immediate vs deferred annuity
Immediate annuity starts paying pension right away. Deferred annuity grows your corpus for a specified period before pension begins.
Joint life annuity
Covers both primary and secondary (spouse) annuitants. The secondary annuitant receives a specified percentage of pension after the primary's death.
Return of purchase price
Provides a nominee benefit on death — the original investment is returned. This results in a slightly lower annuity rate.
Annuity rate factors
Annuity rates depend on age, interest rate environment, life expectancy tables, and the specific insurer. Compare products before buying.
This tool is for planning and educational use only and does not constitute financial advice. Actual annuity rates are set by insurers and can vary.
Annuity FAQ
What annuity rate should I use?
Current annuity rates in India range from 5.5% to 7.5% depending on the insurer, age, and annuity variant. Check with LIC and private insurers for current quotes.
Is annuity income taxable?
Yes. Annuity income is fully taxable as income from other sources in the year of receipt under the Income Tax Act.
Can I surrender an annuity?
Most immediate annuities cannot be surrendered after purchase. This is one reason why you should compare carefully before committing.
Retirement Planning: Detailed Guide
This retirement calculator helps you turn long-term assumptions into an actionable financial plan. Retirement outcomes depend on savings rate, inflation, expected returns, pension structure, withdrawal strategy, and longevity. Use this estimate as a planning baseline and then refine it with your real salary, contribution history, investment mix, and expected retirement lifestyle costs.
For better planning quality, run multiple scenarios using conservative, realistic, and optimistic assumptions. Small changes in inflation, post-retirement return, pension income, or retirement age can meaningfully change your required corpus. Recalculate every 6 to 12 months and after major life events such as job changes, salary jumps, family additions, or shifts in health and insurance needs.
How to use retirement calculators effectively
Start with accurate inputs for current expenses, years to retirement, expected inflation, current savings, and expected portfolio return. Build in a safety margin for healthcare and longevity so your plan remains stable even if actual returns are lower than expected.
Common retirement planning mistakes
Many people underestimate inflation and overestimate returns. Others ignore tax impact, healthcare costs, and sequence-of-returns risk in early retirement years. A robust retirement plan balances growth, predictable income, and adequate liquidity for emergencies.
Build a complete retirement system
Use pension, corpus, SIP required, commutation, and withdrawal calculators together to create a complete retirement roadmap. This connected approach helps you decide how much to save now, how to allocate assets, and how to draw income sustainably after retirement.