Pension Calculator in Ahmedabad
Once you have a retirement corpus, an annuity (pension) turns it into a steady monthly income. Enter your corpus and the annuity rate your provider offers to see the monthly and annual pension it can generate. A higher corpus or annuity rate means a larger, more comfortable income.
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Talk to an AMFI-registered Mutual Fund Distributor (ARN-354187) in Ahmedabad. Free, no-obligation guidance tailored to your numbers. We'll bring up your scenario — Monthly pension: ₹50,000.
How it's calculated
The formula
Annual pension = corpus × annuity rate (as a decimal). Monthly pension = annual pension ÷ 12.
Assumptions
- An immediate lifetime annuity at a constant rate.
- The full corpus is annuitised (no lump-sum kept aside).
- Payouts are fixed (not inflation-linked) and taxable at your slab.
Sources
Real-world scenarios
See exactly how the numbers play out in the situations people actually face — so there are no surprises before you commit.
A ₹1 crore corpus at a 6% annuity
Annuitise a ₹1 crore retirement corpus at a 6% annuity rate and it pays about ₹50,000 a month — ₹6 lakh a year — for life. The bigger the corpus and the better the annuity rate, the more comfortable the monthly cheque.
The annuity rate makes or breaks it
On the same ₹1 crore, a 6% annuity pays ₹50,000 a month while a 7% annuity pays about ₹58,000 — nearly a lakh more a year. Shop annuity providers carefully at retirement; a small rate difference is locked in for decades.
Why a fixed pension needs a top-up
A level annuity pays the same rupee amount for life, so 6% inflation halves its real value in about twelve years. Keep part of your corpus in growth assets, or choose an increasing annuity, so your pension keeps pace with rising costs.
Illustrative figures on standard reducing-balance / compounding assumptions — your actual numbers may vary.
Frequently asked questions
The details worth knowing before you rely on these numbers.
How is pension from a corpus calculated?
Annual pension = corpus × annuity rate; the monthly pension is that divided by 12. For example, a ₹1 crore corpus at a 6% annuity rate pays ₹6 lakh a year, or ₹50,000 a month.
What is an annuity rate?
It is the annual income an insurance company pays you in exchange for your lump-sum corpus. For a lifetime annuity in India it is typically 5.5%–6.5%, varying with your age and the annuity option you choose.
Is annuity / pension income taxable?
Yes. Annuity payouts are taxed as income at your slab rate in the year you receive them.
Does a fixed pension keep up with inflation?
A plain lifetime annuity is usually fixed, so its real value falls over time. Some annuities offer an increasing payout, and many retirees keep part of their corpus in a growth investment to offset inflation.
How big a corpus do I need for ₹50,000 a month?
At a 6% annuity rate you would need roughly ₹1 crore for ₹50,000 a month. Use the retirement calculator to work out the corpus your goals require.
What are the main types of annuity?
Common options include a life annuity (pays you for life, then stops), a joint-life annuity (continues to your spouse after you), a return-of-purchase-price annuity (pays a lower rate but returns the corpus to your heirs), and an increasing annuity (the payout rises each year to fight inflation). Each trades a higher monthly amount against features like inflation protection or leaving money behind.
Annuity or SWP — which gives better retirement income?
An annuity pays a fixed income for life regardless of markets, but usually at a modest rate, and the corpus is gone once purchased. A Systematic Withdrawal Plan keeps you invested and in control — you can vary or stop withdrawals and pass any balance to heirs — but the income is market-linked and can deplete if drawn too fast. Many retirees use an annuity for a dependable base and an SWP for flexibility.
Should I convert my whole corpus into an annuity at retirement?
Usually not. A common approach is to annuitise only enough to cover your essential fixed expenses — a dependable base — while keeping the rest in growth and liquid assets to fight inflation and meet emergencies. Locking the entire corpus into a fixed annuity can leave you exposed to rising costs over a long retirement.
Is this pension calculator free?
Yes — it is free, needs no sign-up, and runs entirely in your browser. Your inputs stay on your device unless you choose to speak with an Apex TechFin advisor.
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