What is it?
The Annuity Calculator works out the Pension each time, the Pension a year, and the After tax, a year income from buying an annuity with a lump sum.
Who is it for?
Retirees and NPS subscribers planning a lifelong pension from a lump sum.
How to use it
Enter the Purchase price (lump sum), the Annuity rate from the insurer, how often it is Paid (monthly, quarterly, half-yearly or yearly) and Your tax slab. The answer appears as you type; there is no Calculate button. Tap Copy result to copy it, or Share on WhatsApp to send it.
How it works
For an immediate life annuity with return of purchase price, the pension continues for life and the lump sum goes to your nominee. Annuity income is taxed at your slab rate. Options without return of purchase price pay a higher pension but nothing to heirs.
Choosing well
- Annuity rates are fixed for life at purchase and don’t rise with inflation. Don’t put all retirement money into one annuity.
- Monthly payouts are slightly lower in total than yearly.
- Joint-life annuities continue for a spouse; they pay a little less but protect the survivor.
- Compare quotes from several insurers; rates differ.
NPS subscribers must use at least 40% of their corpus for an annuity at retirement; see the NPS Calculator.
This is an estimate to help you plan, not financial or tax advice. Read the scheme or policy documents, and ask a qualified adviser for big decisions.
Errors and how to fix them
- Pension seems low: enter the annuity rate as a yearly % from the insurer’s quote.
Open the tool: Annuity Calculator
Still stuck?
Contact support. Tell us which tool or page you were using, what you tapped, what you saw, and your phone or computer and browser (for example: Android phone, Chrome). We reply by email.
Questions, or an error not listed here?
Tell us in the comments: what you were doing, the exact message you saw, and your device and browser. We read every comment and add new fixes to this article.