Knowledge Base

Pension Planner

Monthly Pension = Corpus × Annuity Rate / 12

Annuity rates in India: 5-7% for life annuities from LIC/insurers.

Joint-life annuity (covers spouse) pays ~0.5-1% less but provides security.

Annuity income is fully taxable as "Income from Other Sources."

Consider: NPS (40% annuity mandatory) + SWP (voluntary) + SCSS for blended income.

Inflation will halve your pension's purchasing power in 12 years at 6% inflation.

Pro Tip

Don't put everything in annuity. Keep 60% in growth assets (SWP) and 40% in guaranteed (annuity/SCSS).

Pension Planner - Complete Guide

Everything you need to know about Pension Planner and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

Monthly Pension = Corpus × Annuity Rate / 12

Key Concepts & Rules

Annuity rates in India: 5-7% for life annuities from LIC/insurers.

Joint-life annuity (covers spouse) pays ~0.5-1% less but provides security.

Annuity income is fully taxable as "Income from Other Sources."

Consider: NPS (40% annuity mandatory) + SWP (voluntary) + SCSS for blended income.

Inflation will halve your pension's purchasing power in 12 years at 6% inflation.

Expert Strategy

Don't put everything in annuity. Keep 60% in growth assets (SWP) and 40% in guaranteed (annuity/SCSS).

How to use this Calculator?

1. Enter your specific values in the input fields above.
2. The calculator will render instant results as you type.
3. Check the breakdown table for year-by-year projections.
4. Adjust the inputs to see how different scenarios impact the final result.