Got your Retirement Corpus? Calculate the Pension can you generate
The Pension Calculator is quite popular among those who are eager to know about their pension requirements after retirement. It is also popularly known as Annuity Calculator. Such Pension Calculators are used by major institutions which offer pension plans such as ICICI, Kotak, etc. InvestmentYogi provides a very simple calculator for knowing how much pension amount you would get annually by investing a lump sum from the retirement corpus.
Why should you use this calculator?
If you are eager to know how much pension would be generated for the post retirement years from the available corpus, this is the one for you.
How to use this calculator?
The entries to make are:
Principal Amount (Rs) – The lump sum amount available for investing now or expected lump sum amount which you would be investing.
Growth Rate p.a – It is the rate at which the investment is expected to grow. It is per annum compounding. Enter the post tax rate of return.
Years to Pay Out – Enter the number of years you wish to receive the annual pension. It is usually the number of years of lifespan expected after retirement since pension is a continuous requirement.
Make Pay Out at the start of each year (annuity due) - Select this option if you want the pension to be paid at the beginning of each year.
Make Pay Out at the end of each year (ordinary/immediate annuity) – Select this option if you want the pay out to be made at the end of each year. In this case, annuity amount is usually higher than when paid at the beginning of the year.
Once you have enter these values and click on submit, the result would be stating the annual pension amount that would be received every year for the number of years specified.
When should you use this Calculator?
This calculator is to be used by those who are looking to retire soon or have just retired and are worried about the pension amount to be generated from the available retirement corpus.
Can it be used in any other situation?
This calculator is to be specifically used when you want to know how much pension amount can be generated from your savings.
Frequently asked questions about Retirement
Some frequently asked questions related to Retirement have been answered in the following articles:
Pension Plans – This article talks about Retirement planning, options for investment, etc along with explanation of terms related to retirement.
Planning for Retirement – It speaks about various aspects of retirement such as when to retire, approach towards investment, insurance, etc.