Pension Calculator

Step 1: Enter your date of birth

Enter your date of birth (DD/MM/YYYY) to calculate your age and retirement date.

Step 2: Enter your current monthly expenses

Enter your monthly expenses in ₹ to determine your financial needs after retirement. In this way, you can estimate how much pension you need.

Step 3: Determine the expected return (%)

To calculate the future value of your retirement fund, enter the expected return on your savings and investments.

Step 4: Enter your current monthly investment amount (₹)

Provide information regarding your monthly investments in different financial instruments, such as fixed deposits, mutual funds, stocks, and other retirement savings plans.

Step 5: Provide your full name

The full name should be entered in the same manner as the full name on your official ID document, such as your Aadhar card or PAN card.

Step 6: Enter your mobile number

Enter your mobile phone number in the provided field.

Step 7: Review the returns

After entering your details, click "Check Returns" to get your estimated pension amount and accumulated corpus. By learning how much more investment you need to make to reach your retirement goals, you will be able to plan accordingly.

Financial independence:

Once you retire and stop working, you no longer secure a regular income through a salary. But the daily expenses, along with some other needs doesn't end. Without an efficient financial plan, managing all the requirements may be difficult. With a suitable retirement plan in place, you can have an income source consisting of investments, pensions, and savings that may ensure you live independently post-retirement.

Emergency safety net:

Emergencies, be they health, accidental, or any other, usually never end. Even after one's retirement, unforeseen medical expenditures, financial crisis or costly home repairs, may arise at any time and reduce your savings. Retirement planning is vital to ensure a reliable emergency fund is in place to help you deal with all kinds of sudden and urgent financial needs. 

Fights inflation:

There is a steady rise in the cost of food, utilities, healthcare, and other necessities over time. 15–20 years from now, what may seem affordable may become expensive. You can beat inflation by planning early. You won't have to compromise on your lifestyle since your retirement income maintains its purchasing power.

Healthcare costs:

There is a steady rise in the cost of food, utilities, healthcare, and other necessities over time. 15–20 years from now, what may seem affordable may become expensive. You can beat inflation by planning early. You won't have to compromise on your lifestyle since your retirement income maintains its purchasing power.

Investment returns:

 It usually takes time for wealth to grow, and patience, discipline, and appropriate investment choices are vital to achieve the desired results. Investing early is important, as it gives the investments more time to benefit from the compounding effect. Diversifying across a variety of products, like mutual funds, NPS, pension plans, and fixed-income investments can help build the required retirement corpus. 

Tax efficiency:

NPS, PPF, EPF, and pension plans are among the retirement schemes that offer tax* benefits. With a planned approach, you can choose the right mix of tax-saving and retirement-building instruments to reduce your tax outgo today and enjoy tax-efficient withdrawals in the future. Over time, this will increase your total savings.

Government pension schemes:

Pension schemes offered by governments provide individuals with financial security post-retirement. Typically, these schemes are funded through employer contributions, employee contributions, and tax collection. Furthermore, government schemes provide a steady source of income and are adjusted for inflation. This plan allows individuals to receive a predefined pension income after retirement.

Employee pension plans:

The Employee Provident Fund (EPF) was introduced by the EPFO (Employee Provident Fund Organisation) in 1995. The plan aims to provide employees with financial security and stability after retirement. After crossing the age of 58, the EPFO ensures that all employees receive their desired pension amount.
Each year, 12 percent of an employee's basic salary plus dearness allowance contributes to an employee's pension plan. Private sector employees are required to participate in this pension plan, which offers various tax* benefits.

Private pension options:

A private pension plan is a retirement plan offered by an employer or another financial institution. Individuals can continue saving and investing post-retirement with this option. In addition, a private pension allows you to choose different investment strategies depending on your level of risk tolerance.

Immediate annuity plans:

In this plan, you make a one-time lump sum payment, and the pension starts immediately. You receive regular income for a set period, making it suitable for those who are retiring soon.

Deferred annuity plans:

This plan lets you pay premiums in instalments over time, known as the accumulation period. Once this period ends, you start receiving pension payouts. It’s suitable if you want to plan early for retirement.

 National Pension Scheme (NPS):

NPS is a government-supported retirement plan available to employees in the public, private, and organised sectors. You can invest in a mix of equity and debt instruments and build a retirement corpus gradually.
 

With multiple pension plans available, it’s important to choose one that matches your financial goals and retirement needs. A retirement and pension plan calculator helps you compare different options by estimating your future income based on inputs like your age, savings, investment amount, and retirement age.

Purpose of the Plan:

Understanding the purpose of your retirement plan is crucial to retirement planning. Based on your future financial commitments, you can opt for a pension plan with a regular income or a retirement plan with a lump sum benefit.

Compare Plans:

It is always better to go through all the available options, their features, benefits, and offerings, to ensure that you pick a retirement plan that is right for you. With a pension plan calculator, you can determine the desired annuity amount at an affordable premium by comparing the flexible features, such as the premium payment term, premium payment mode, and annuity option.

Adequate Finances:

Ensure you are able to save the retirement funds as estimated with the monthly pension plan calculator. This is because the inflation rate and the interest rate are also calculated to help give you a better estimate of how much you need to save. If you need to cut down on some unnecessary expenses, consider it, but do not compromise on your retirement planning.

Plan Options:

You can choose between different annuity plans. The deferred annuity plan allows you to receive the benefits after the premium payment term, while an immediate annuity if you want to invest a lump sum and receive the benefits soon after.

Maturity Benefits:

Once your retirement plan becomes mature, the pension benefits are paid out either as a lump sum, a regular income, or a combination of both for you to meet your goals. Most retirement plans offer regular income as a payout option.

Emergency Needs:

Even though you may have other savings for emergencies, make some provision for emergency funds in your retirement planning as well. A medical emergency can require significant financial resources, depleting your savings. Hence, some extra savings can be beneficial.