Annuity Calculator
Pension Income
Planner India
Calculate your monthly pension from annuity plans. Compare LIC, SBI Life and HDFC Life rates. Find your breakeven age and total lifetime income instantly.
🛡️ Lifetime Income🏦 Compare Insurers📊 Breakeven Age💰 NPS Annuity
Annuity at a Glance
6–7%Best Annuity Rate
LifetimeGuaranteed Income
65+Best Age to Buy
40%NPS Mandatory
₹1Cr purchase @6.4% LIC
₹53,333/mo
Lifetime
Breakeven age — LIC @65
~81 years
Longevity Insurance
Best annuity rate 2026
LIC Jeevan Akshay
6.4% pa ⭐
Annuity Calculator
Calculate your guaranteed lifetime pension income
Annuity Type
Purchase Amount / Corpus ₹50 Lakh
Annuity Rate (% per annum) 6.5%
Your Current Age 60 years
Payout Frequency
Monthly Pension
₹—
Annual Income
₹—
Breakeven Age
—
30-yr Total Payout
₹—
Purchase Corpus
₹—
Real Value @10yr
₹—/mo
Per ₹1L Invested
₹—/mo
vs FD Advantage
—%
🏦 Top Insurers — Rates for Your Corpus
🏛️
LIC
Jeevan Akshay VII
₹—/mo
Monthly income
6.4% pa ⭐ Best🏦
SBI Life
Saral Pension
₹—/mo
Monthly income
6.1% pa💎
HDFC Life
Guaranteed Pension
₹—/mo
Monthly income
6.0% pa⭐
ICICI Pru
Guaranteed Income
₹—/mo
Monthly income
5.9% paAnnuity — Key Facts India
What every pension buyer must know
🛡️
6–7%
Top Annuity Rates
LIC, SBI, HDFC 2026
📅
Lifetime
Payment Guarantee
Cannot be outlived
🎂
78–81yr
Typical Breakeven Age
Buying at 65 @ LIC
💸
Slab
Tax on Annuity Income
Treated as regular income
🏛️
40%
NPS Mandatory Annuity
At NPS maturity
📋
80CCC
Tax Deduction
Up to ₹1.5L on premium
🔐
IRDAI
Regulated & Safe
All annuities IRDAI-approved
💑
Joint
Spouse Protection
Continues for survivor
📊 Annuity Rate Comparison — Monthly Income per ₹1 Crore (2026)
LIC Jeevan Akshay
6.4% ⭐
SBI Saral Pension
6.1%
HDFC Guaranteed
6.0%
ICICI Pru
5.9%
Bajaj Allianz
5.7%
Annuity Buying Guide 2026
Choose the right plan for guaranteed lifetime income
Plan Type
Immediate vs Deferred Annuity
Immediate annuity pays within 1 month of purchase — ideal for retirees needing income now. Deferred annuity accumulates at a guaranteed rate for a set period, then pays out — use it if you're pre-retirement and want to lock in today's rates before RBI cuts push them lower.
1 MonthImmediate Start
1–30yrDeferral Options
Lock RateKey Benefit
Spouse Cover
Single vs Joint Life Annuity
Joint life annuity continues paying your spouse after your death at 50–100% of original (depending on plan). Monthly income is 10–15% lower than single life but provides essential longevity protection. Under IRDAI 2025 regulations, joint life plans must now offer at least 50% continuation for spouse.
50–100%Spouse Payout
10–15%Lower Income
Must-HaveIf Dependent Spouse
Timing Strategy
Why Buying at 65+ Gets You 30% More
Annuity rates improve significantly with age — insurer expects fewer payout years. A 65-year-old gets 25–35% more monthly income than a 55-year-old for the same corpus. Strategy: use SWP from 60–65 for better tax efficiency, then annuitise at 65+ for guaranteed lifetime income at premium rates.
25–35%More at 65 vs 55
Best WindowAge 65–70
SWP FirstYears 60–65
NPS Rules
NPS Annuity — How It Works in 2026
At NPS maturity (60+), minimum 40% of corpus must buy annuity from IRDAI-empanelled Annuity Service Providers. The remaining 60% is tax-free lumpsum. 11 ASPs available including LIC, SBI Life, HDFC Life, ICICI Pru. NPS annuity income is taxable at your applicable slab rate under both Old and New regimes.
40%Mandatory Annuity
60%Tax-free Lumpsum
11 ASPsAvailable
Breakeven Maths
Breakeven Age — Know Your Number
Breakeven Age = Purchase Age + (Corpus ÷ Annual Payout). Example: buy at 65, ₹50L corpus, 6.4% rate = ₹3.2L/year. Breakeven = 65 + 15.6 = ~81 years. India life expectancy: 70–73 years for men. Statistically, many buyers won't reach breakeven — but annuity is longevity insurance, not investment.
FormulaAge + (P÷A)
~81yrTypical Breakeven
InsuranceNot Investment
Tax Treatment
Annuity Tax vs MF SWP — Big Difference
Annuity income is 100% taxable as 'Income from Other Sources' at slab rate. MF SWP: only the gain portion taxed at 12.5% LTCG. On ₹1Cr corpus in 30% bracket: annuity annual tax ≈ ₹1.9L vs SWP annual tax ≈ ₹0.25L — a ₹1.65L annual saving from SWP, every year for life.
100%Annuity Taxable
~4%Effective SWP Tax
₹1.65LAnnual Tax Saving
Annuity — Smart Buying Tips 2026
Maximise your guaranteed pension income
01
Never Annuitise 100% of Your Corpus
Convert only 40–60% to annuity for guaranteed income. Keep the rest in SWP or balanced funds. This hybrid approach gives guaranteed base income (annuity) + flexible inflation-adjusted income (SWP) + capital for emergencies. 100% annuity locks in low fixed income with no flexibility ever after.
🎯 Hybrid Approach02
Always Compare at Least 3 Insurers
LIC, SBI Life, HDFC, ICICI Pru, Max Life — rates differ by 10–15% for the same corpus. ₹1Cr at LIC (6.4%) = ₹53,333/mo vs ICICI Pru (5.9%) = ₹49,167/mo — ₹4,166/mo more from LIC over your lifetime. Use PolicyBazaar or Coverfox to get all quotes simultaneously.
💰 Rate Shopping03
Choose Return-of-Purchase-Price Option
ROP returns your full purchase price to nominees after death. Monthly income is 15–20% lower than non-ROP, but your capital is preserved for heirs. Choose ROP if you have dependents or want to leave an inheritance. If no dependents and need maximum income, choose without ROP.
🏆 Capital Preserved04
Lock In During High Interest Rate Cycles
Annuity rates track RBI repo rate and bond yields. With RBI keeping rates elevated in 2025–26, current annuity rates (6.4–6.8%) are near multi-year highs. If you're planning to retire in 1–2 years, consider locking in now with a deferred annuity rather than waiting for possibly lower rates.
📈 Rate Lock Strategy05
Port to 60-Day Window Under IRDAI 2025
Under IRDAI 2025 regulations (effective April 2025), the porting window for annuities has been clarified — compare ASPs carefully at NPS withdrawal time. You cannot switch annuity providers after purchase for immediate annuities. Spend at least 2–3 weeks comparing before deciding.
⚖️ Due Diligence06
Consider Inflation-Indexed Annuity for 30yr Horizon
Some insurers offer annuities increasing 3–5% annually. Income starts 20% lower but grows every year — preserving purchasing power over a 30-year retirement. By Year 18, an inflation-linked annuity surpasses regular annuity in cumulative receipts. Essential if retiring at 55–60 with a long horizon ahead.
🌱 Inflation-ProofFrequently Asked Questions
Everything about annuity plans in India
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