Question 1

How is pension calculated from a corpus?

Accepted Answer

Pension is calculated by applying the annuity rate to your retirement corpus. For example, a 1 crore corpus at 6% annuity rate gives you 6 lakh per year or 50,000 per month as pension.

Question 2

What is a good annuity rate for pension?

Accepted Answer

Annuity rates in India typically range from 5-8% depending on the insurance company, your age at purchase, and the type of annuity. Higher rates usually mean less flexibility or no return of purchase price.

Financial Calculators