How much monthly pension will I get from my corpus?

It depends on your corpus size, the annuity or pension rate, and the payout option you choose. As a guide, a corpus of 50 lakh at an annuity rate of about 6.5% can pay roughly 27,000 rupees a month for life when the purchase price is returned to your nominee. Choosing an option without return of purchase price pays more per month but does not return the capital.

What is the difference between with and without return of purchase price?

With return of purchase price, you effectively receive the interest earned by your corpus as pension, and the full corpus is returned to your nominee on death. Without return of purchase price, the corpus itself is gradually paid out, so you receive a higher monthly pension but nothing is left for your nominee.

How is a pension different from a retirement corpus?

A retirement corpus is the lump sum you accumulate by the time you retire. A pension is the regular monthly income that corpus generates once you retire. Our retirement calculator sizes the corpus you need to build, while this pension calculator shows the income that corpus can pay you.

Pension Calculator

How much monthly pension will I get?

See the monthly income your retirement corpus or annuity can pay you — for life.

Your estimated monthly pension

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Annual pension

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Corpus returned to nominee

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Figures are indicative estimates for planning only, based on the inputs and assumptions you provide, and are not guaranteed returns or financial advice. Actual annuity rates and pension payouts depend on the plan, provider, your age and prevailing rates at purchase.

📊 How your pension is calculated

A pension (or annuity) converts a lump-sum corpus into a regular income. How much you get each month depends on the payout option you pick:

With return of purchase price. You effectively receive the interest your corpus earns as pension — so monthly pension = corpus × annuity rate ÷ 12. Your full corpus stays intact and is paid to your nominee. Lower monthly income, but your capital is preserved.
Without return of purchase price. The corpus itself is gradually paid out to you over the payout period, so each instalment includes both interest and a slice of capital. This gives a higher monthly pension, but nothing is left at the end.

In finance terms, the "without return" pension is a standard annuity payment — the level monthly amount whose present value, discounted at the annuity rate, equals your corpus over the payout period. The "with return" pension is simply the monthly interest yield on your corpus.

How much pension will you get in India?

A pension is the regular income you receive after you retire, usually generated by converting your retirement savings into an annuity. The amount you get each month depends on three things: the size of your corpus, the annuity or pension rate on offer, and whether you choose an option that returns your capital to your nominee or not. This pension calculator lets you try different corpus amounts and rates to see the monthly income you could expect.

Pension calculator vs retirement calculator

These two tools answer different questions and work together. The retirement calculator tells you how much corpus you need to build before you retire — the accumulation phase. This pension calculator tells you how much monthly income that corpus can pay you after you retire — the payout phase. A good plan uses both: first size your target corpus, then check the pension it will generate.

With or without return of purchase price?

This is the most important choice in any annuity. With return of purchase price, you receive a slightly lower monthly pension, but your entire corpus is returned to your nominee when you pass away — useful if you want to leave a legacy. Without return of purchase price, you receive a higher monthly pension because the corpus itself is being paid out, but nothing remains for your family. The right choice depends on whether income or inheritance matters more to you.

How much pension will 50 lakh give per month?

At an annuity rate of around 6.5% with return of purchase price, a corpus of ₹50 lakh would pay roughly ₹27,000 per month for life, with the ₹50 lakh returned to your nominee. An option without return of purchase price would pay more per month but leave no capital behind.

What is a good annuity rate in India?

Indian annuity and pension plans typically offer rates in the range of about 6% to 7% per annum, depending on your age, the provider, the payout option and prevailing interest rates. Older buyers and options without return of purchase price generally receive higher rates.

Is pension income taxable?

Yes, in India annuity and pension income is generally taxable as per your income tax slab in the year you receive it. The tax treatment can vary by product, so it's worth confirming the specifics for any plan you consider.