Calculate Your Monthly Pension Income in India
Planning your retirement? Wondering how much guaranteed income you can get by investing in an annuity plan? Use Dimeable.io’s free annuity calculator to find your monthly, quarterly, or yearly payouts based on your investment, annuity type, age, and frequency of payout.
This calculator helps you estimate your financial security post‑retirement by showing the fixed income you can expect from annuity plans offered by insurers in India.
Annuity Features (Aug 2025):
- Current Rates: 5% to 7% p.a. for immediate annuities[2][5]
- Minimum Investment: ₹50,000 to ₹1 lakh (varies by insurer)[11]
- Maximum Investment: No upper limit in most plans[9]
- Guaranteed Income: Lifetime payments assured[9]
- Tax Treatment: Annuity income taxable as per slabs[9]
- Joint Life Options: Spouse coverage available[6]
Annuity Benefits
- Guaranteed lifetime income stream
- Protection against longevity risk
- Regular periodic payouts
- No market risk on principal
- Inflation protection options available
Key Considerations
- Higher age at purchase = higher rates
- Guarantee periods reduce payout rates
- Joint life annuities have lower rates
- Return of premium reduces income
- Compare rates across insurers
⭐ Features of Dimeable.io Annuity Calculator
- ✅ Calculate income from Immediate, Deferred, Life, Joint Life & Annuity Certain plans
- ✅ Get accurate monthly, quarterly, half‑yearly, and annual payouts
- ✅ Adjust results by investment amount, age, guarantee period, and payout option
- ✅ See effective rate of return and break‑even period instantly
- ✅ Compare different annuity options before investing
📖 How to Use the Annuity Calculator?
- Select your Annuity Type (Immediate, Deferred, Life, etc.)
- Enter your investment amount (purchase price)
- Input the annuity rate (usually 5%–7% p.a. depending on insurer)
- Provide your age at purchase
- Choose your payout frequency (monthly, quarterly, half‑yearly, or annual)
- Select a guarantee period (if applicable)
- Click on “Calculate Monthly Income”
The calculator will instantly show your expected payouts, annual income, effective rate of return, and break‑even period.
🔎 Why Use an Annuity Calculator?
An annuity is a retirement product offered by life insurance companies, designed to provide a guaranteed income stream for life.
Our calculator helps you:
- Plan your retirement income more accurately
- Compare payouts before buying an annuity plan
- Decide between Immediate vs Deferred annuities
- Estimate income for Single & Joint life options
- Understand the impact of guarantee periods on your payouts
🧾 Example
- Investment: ₹10,00,000
- Age at Purchase: 60 years
- Rate: 6.5%
- Payout Frequency: Monthly
- Guarantee Period: 10 years
✅ Monthly Income = ₹5,417
✅ Annual Income = ₹65,000
✅ Effective Rate = 6.5%
✅ Break‑Even Period = 15.4 years
This shows how long it takes to recover your invested amount through annuity payouts.
💡 Key Benefits of Annuity
- Guaranteed lifetime income
- No market risk – returns are fixed
- Protection against longevity risk (outliving your savings)
- Spouse coverage available with joint life annuities
- Option to get back purchase price under “Return of Premium” variants
⚠️ Points to Consider
- Higher age at purchase = higher annuity rates
- Joint annuity = lower monthly income compared to single life
- Guarantee periods reduce payout rates
- Annuity income is taxable as per your income tax slab
- Rates vary between insurance companies → always compare before buying
❓ Frequently Asked Questions (FAQs)
Q1. What is an annuity?
👉 An annuity is a retirement plan that provides you with regular income for life in exchange for a lump‑sum investment.
Q2. Is annuity income tax‑free in India?
👉 No. Annuity payouts are taxed as per your income tax slab. However, investment in an annuity scheme can be made from your NPS corpus under Section 80CCD.
Q3. What is an immediate annuity?
👉 In an Immediate Annuity, payouts start right after you invest. For example, if you choose monthly payout, you will start receiving payments from the next month.
Q4. What is a deferred annuity?
👉 In a Deferred Annuity, payouts begin after a few years. This allows your investment to accumulate before you start receiving income.
Q5. How do I choose the best annuity option?
👉 Consider your age, financial goals, whether you want spouse coverage, need return of purchase price, and your comfort with risk. Use this calculator to compare options before finalizing.
Q6. Can I withdraw my annuity investment?
👉 No. Once invested, annuity investments are generally non‑withdrawable and irreversible. They are designed for lifelong security rather than liquidity.
📌 Final Call‑to‑Action (CTA)
💡 Secure your retirement today with the Dimeable.io Annuity Calculator.
Plan your monthly pension, guaranteed income, and financial future in minutes – simple, fast, and accurate.
