Annuity Payout Calculator

Here's the uncomfortable truth about retirement in India: unless you worked for the government or a large PSU, you probably don't have a pension. Your EPF and PPF will give you a lump sum, your mutual funds will give you a corpus, but nobody is going to deposit ₹50,000 into your bank account on the first of every month, automatically, for the rest of your life. Unless you buy an annuity.

An annuity is a contract with an insurance company. You hand them a lump sum — say ₹50 Lakhs — and they guarantee you a fixed monthly income for life. The simplest option, Life Annuity, pays the highest rate (around 7–7.5%) but the money is gone when you die. The safer option, Annuity with Return of Purchase Price, pays slightly less (6–6.5%) but returns your full ₹50 Lakhs to your nominees.

At 6.5% on ₹50 Lakhs, that's ₹27,083 per month, guaranteed, rain or shine, bull market or bear market, for the rest of your life. No spreadsheet tracking. No market anxiety. Just a bank credit every month.

The downside? Annuity income is fully taxable at your slab rate, and the payout doesn't increase with inflation. This is why smart retirees don't put 100% of their corpus in annuities. They put 30–40% in an annuity for guaranteed base income, and invest the remaining 60–70% in equity mutual fund SWPs for tax-efficient, inflation-beating withdrawals. The combination gives you the best of both worlds: safety and growth.