Retirement & Benefits
Pension / Annuity Calculator
Quick answer: The FinTax24 Pension / Annuity Calculator estimates the lump-sum investment required today, the monthly pension a retiree receives, and the annuity corpus needed for desired income. It covers NPS Tier-1 annuity purchase, LIC Jeevan Akshay VII, SBI Life Annuity Plus, HDFC Life Pension schemes and SCSS / POMIS post-office annuity products.
Pension / Annuity Calculator
Estimate monthly pension from a corpus under various annuity plans.
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Disclaimer: Results are for indicative purposes only and may vary based on actual rates, rules, and policies. Please consult a FinTax24 expert for binding advice.
How to use this calculator
Follow these 4 steps for an accurate result.
- 1
Pick annuity type
Choose Immediate Annuity (LIC/SBI/HDFC), NPS Tier-1 Annuity, SCSS, POMIS or Reverse Mortgage.
- 2
Enter lump-sum
Type the corpus you plan to annuitise.
- 3
Enter age
Type age at which annuity purchase begins.
- 4
Read monthly pension
Calculator shows monthly pension, returns of capital component and annuity rate.
Key takeaways
- Immediate-annuity products (LIC, SBI Life, HDFC, ICICI Prudential) lock a lump sum for monthly pension.
- NPS Tier-1 mandates 40% annuity at age 60 — calculator matches with PFRDA-empanelled annuity rates.
- Post-office SCSS and POMIS deliver 8-8.2% monthly + senior-citizen eligibility.
- Surfaces lump-sum needed, monthly pension and post-tax annual income from the annuity.
Frequently asked questions
Quick answers to common questions about pension / annuity calculator.
What is an annuity?
An annuity is a contract where a lump-sum corpus is given to an insurer in exchange for a guaranteed monthly pension for life (with or without spouse coverage). Annuities from LIC, SBI Life, HDFC Life, Max Life and ICICI Prudential are the standard options for Indian retirees.
What annuity rate can I expect?
Immediate-annuity rates vary by product, age and spouse-coverage option. At age 60, LIC Jeevan Akshay VII offers ~6.5-7% annuity rate. SBI Life Annuity Plus is similar. NPS annuity rates range 5-7% depending on the annuity choice (single life, joint life, return of purchase price, etc.).
Is annuity income taxable?
Yes — annuity income is fully taxable at slab rate. There is no Section 10 exemption. NPS annuity income is also taxable. Use the calculator to model the annuity income, then apply your slab rate to estimate post-tax income.
What is SCSS (Senior Citizen Savings Scheme)?
SCSS offers 8.2% per annum (currently) interest paid quarterly, available to senior citizens (60+) and retirees. Maximum ₹30 lakh deposit per individual. 5-year tenure, extendable by 3 years. Calculator supports SCSS for retirement-income planning.
What is POMIS (Post Office Monthly Income Scheme)?
POMIS offers 7.4% per annum (currently) interest paid monthly, available to anyone. Maximum ₹9 lakh (single) / ₹15 lakh (joint). 5-year tenure. Useful for retirement income planning. Calculator supports POMIS inputs for monthly-income estimation.
Should I annuitise the whole NPS corpus?
Most retirees annuitise the mandatory 40% (minimum) and use the remaining 60% for lump-sum withdrawal, mutual fund SWP, or bucket strategy. Choosing higher annuity (up to 100%) reduces flexibility but increases guaranteed monthly income. Calculator supports 40-100% annuity split.
Sources & authority: For regulations on pension / annuity calculator, refer to gst.gov.in, mca.gov.in, incometax.gov.in, rbi.org.in, PFRDA — NPS annuity empanelled providers, LIC — Jeevan Akshay VII plan, India Post — SCSS / POMIS.
Last reviewed by: FinTax24 Retirement Desk · Reviewed on:
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