Annuity Pension Payout Calculator
Enter your retirement corpus to see the monthly pension it buys.
Runs entirely in your browser — your numbers never leave this page.
How it works
An annuity converts a lump sum into a guaranteed monthly pension for life:
- Rate: ~6.5–7.5% currently — Rs 2cr buys ~Rs 1.17L/month for life.
- Life annuity: highest payout, nothing returned at death.
- Return of purchase price: ~15% lower pension, but nominees get the full corpus back.
- Tax: the entire pension is taxable as income — this surprises many retirees.
- Timing: rates lock at purchase for life. Buying when rates are high (or waiting for them) matters enormously.
- NPS connection: NPS mandates 40% annuitization at 60 — this is the same product.
Frequently asked questions
How much pension will Rs 2 crore give?
At 7%, about Rs 1.17 lakh/month for life (life annuity). Before tax — pensions are fully taxable.
Is annuity pension taxable?
Yes — entirely taxable as salary/income. At 30% slab, a Rs 1.17L pension nets ~Rs 82k.
Life annuity vs return of purchase price?
Life annuity pays ~15% more monthly but nothing at death; ROP returns the corpus to nominees.
When should I buy an annuity?
When rates are high — the rate locks for life. Laddering purchases across years hedges rate moves.
Is NPS annuity the same?
Yes — NPS requires 40% of corpus to buy an annuity at 60; the same insurers and rates apply.
Can annuity rates change?
Your purchased rate is locked for life. New purchases get prevailing rates.
Annuity vs SWP?
Annuity: guaranteed, lower, no legacy (unless ROP). SWP: flexible, market-linked, corpus stays yours. Many split both.
What about inflation?
Standard annuities don't index to inflation — Rs 1L/month buys less every decade. Increasing-payout options exist at lower starting rates.
Which insurer?
LIC, SBI Life, HDFC Life dominate. Compare the actual monthly quote for your age — tables differ.
Can I surrender an annuity?
Generally no — it's irreversible. Be certain before committing the corpus.