Pension Calculator
If you want a set monthly pension, this calculator works out the corpus that pays it and the monthly investment needed to build that corpus.
Results
Monthly investment needed
₹33,446
- Corpus needed at retirement
- ₹8,61,52,368
- Pension needed at retirement (monthly)
- ₹4,30,762
- Current savings grow to
- ₹99,18,700
- Total you invest
- ₹1,20,40,458
A pension of ₹75,000 a month in today's money will need ₹4,30,762 a month at age 60. At an annuity rate of 6% you need a corpus of ₹8,61,52,368, which takes a monthly investment of about ₹33,446.
Show the calculation steps
- Pension needed at retirement = ₹75,000 × (1 + 6%)^30 = ₹4,30,762 a month.
- Corpus = yearly pension ÷ annuity rate = ₹51,69,142 ÷ 6% = ₹8,61,52,368.
- Existing savings grow to ₹99,18,700; the remaining ₹7,62,33,668 is built with a monthly investment of ₹33,446.
- A level annuity does not rise with inflation, so its buying power falls over time. Annuity rates depend on the provider and your age.
From pension to corpus
A pension paid from an annuity is the corpus multiplied by the annuity rate. So the corpus you need is the yearly pension divided by that rate. A lower annuity rate means a bigger corpus.
Inflation matters
The pension you want in today's money must be increased for inflation to find what you need on the day you retire. A level annuity will then lose buying power, so plan a margin.
Formula
Pension at retirement = Pension today × (1 + inflation)^years
Corpus = Yearly pension ÷ Annuity rate
SIP = (Corpus − savings grown) × i ÷ (((1 + i)^n − 1) × (1 + i))
Where:
- Annuity rate
- = Yearly payout rate on the corpus used to buy the pension
- i
- = Monthly return before retirement
Example calculation
₹75,000 a month in today's money from age 60
Inputs
- Desired Monthly Pension (Today's Money)
- ₹75,000
- Current Age
- 30 years
- Retirement Age
- 60 years
- Expected Inflation
- 6 %
- Annuity Rate
- 6 %
- Return Before Retirement
- 10 %
- Current Savings for Retirement
- ₹5,00,000
Result
- Monthly investment needed
- ₹33,446
- Corpus needed at retirement
- ₹8,61,52,368
- Pension needed at retirement (monthly)
- ₹4,30,762
- Current savings grow to
- ₹99,18,700
- Total you invest
- ₹1,20,40,458
Step-by-step
- Pension needed at retirement = ₹75,000 × (1 + 6%)^30 = ₹4,30,762 a month.
- Corpus = yearly pension ÷ annuity rate = ₹51,69,142 ÷ 6% = ₹8,61,52,368.
- Existing savings grow to ₹99,18,700; the remaining ₹7,62,33,668 is built with a monthly investment of ₹33,446.
Important notes
- Annuity rates depend on the insurer and your age at purchase.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is the pension corpus calculated?
Corpus = the yearly pension ÷ the annuity rate.
Is the pension inflation-adjusted?
The target is inflated to your retirement date. A standard annuity does not rise after that.
Can I get a higher pension?
Save more, retire later, or choose an annuity that rises each year (with a lower starting payout).
Related calculators
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- Retirement Corpus CalculatorCalculate the retirement corpus you need to cover your expenses, adjusted for inflation, until the age you choose.
- Retirement SIP CalculatorFind the monthly SIP you need to reach your retirement corpus, after counting the savings you already have.
- Retirement Age CalculatorFind the earliest age you can retire on your current savings and monthly investing, given your expenses and inflation.
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