RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Pension Calculator

 

01 PERSONAL INFORMATION

Please enter valid country code Please enter valid mobile no
Years
40 40 60

How to Calculate Pension?

How to Calculate Pension

There is an easy formula to calculate pension you will need to lead the lifestyle you wish in your retirement years. This pension calculation formula works on simple premises. It asks you basic details about your age, expected retirement age, your current income and your monthly expenses, and the investments you have made till date. This helps in the computation of pension calculation accurately and you get an idea of how much you need to invest regularly from now till retirement in order to pursue your retirement life goals and the lifestyle you would like to have. It will help you to calculate the pension amount you desire in your retirement years and plan accordingly.

Let's take the example of 35-year-old woman who earns a monthly salary of Rs 50,000 and plans to retire at 60, wants to check the corpus needed on her retirement. She will simply have to put in these details online, adding the current level of investments and the current monthly expenses. The online pension calculator will calculate the accurate figure of investments needed in the coming years in order to achieve a corpus suitable to the lifestyle A wishes to lead post-retirement.

 

How does a Pension Calculator work?

How does a Pension Calculator work

A pension calculator takes into account personal details like age, current income, savings and investments as well as your regular expenses, and then asks for your desired retirement age. Based on these details, the pension calculator formula calculates how much money you will need to grow your wealth for a hassle-free post-retirement life.

The pension calculator helps you accurately compute your future pension and choose the right types of pension plans to invest in, such as guaranteed pension plans, unit-linked pension plans, or deferred annuity plans, ensuring you meet your financial goals after retirement. The pension calculation formula it employs will help you calculate the pension you will need to meet your life goals after retirement as well as fund your regular and often unforeseen expenses. A good pension calculator in India will help you gauge the monthly pension you will need to live a comfortable life in your golden years without any worries. It will also help you to support dependents financially, allow you to indulge in your hobbies or meet any unforeseen expenses that can crop up in old age. You can also use the retirement calculator to find the ideal retirement corpus you need and also to get and understanding of the growth of you investment you can use the investment calculator.

How to use HDFC Life Pension Calculator?

The HDFC Life Pension Calculator is an easy-to-use online tool that helps you accurately gauge the corpus you will need to accumulate by the time you retire. This will help you generate a monthly pension that will take care of the lifestyle you wish to lead in retirement. Once you calculate the pension then you can select the correct retirement and pension plan as per your needs.

Here are the steps to follow once you visit the HDFC Life Pension Calculator page-

1st Step: Enter your personal information like age and your desired retirement age

 

2nd Step: Enter your annual income, the expected income growth rate over the years

 

3rd Step: Enter your current savings and investment details, specifying the investment type (Fixed Deposit, Mutual Funds, Stock Markets)

 

4th Step: Enter your monthly expenses, giving a detailed break up of expenses by different categories mentioned

 

5th Step: Based on the details provided, calculator will make a computation of the pension calculation and give you the exact figures of the corpus you need on retirement, the expected corpus based on your current savings and investments as well as the additional amount you need to invest to achieve your retirement goals.

 

Pension calculator in India will also take into account a higher pension calculation, considering the expected rate of inflation as well as the interest rates. This gives you an accurate estimate of the funds you will need to live a stress-free retirement.

Benefits of the Pension calculator

The pension calculator takes the stress out of planning for retirement. It is a simple tool that allows you to assess your current income, expenses and savings and aligns it with your retirement goals.
  • Helps You Plan Your Finances

    Financial Planning Assistance

    The pension calculator assists in determining the required savings for retirement, helping you identify any shortfall in your current plans and enabling corrective measures for a secure future. 

  • Provides Financial Clarity

    Enhanced Financial Clarity

    For those with existing retirement plans, the basic pension calculator provides clarity on the potential retirement corpus. Inputting relevant details helps to reveals the expected monthly pension which will be your income during your golden years.

  • You Can Compare Your Options

    Option Comparison

    Utilize the online pension calculator to compare the retirement corpus offered by different plans, allowing you to select a retirement plan aligning with your specific financial needs if you plan your retirement in India.

  • Free & Easy to Use

    Free and User-Friendly

    The retirement calculator is a free and straightforward tool. It requires no technical expertise, and upon entering details, its pension calculation formula instantly displays the necessary savings for your retirement.

FAQ's on Pension Calculator

1 How is pension calculated?

Pension is calculated by estimating the regular expenses you'll have post-retirement. An online pension calculator considers your age, expected retirement age, current income, and savings. This helps it estimate the total savings you will have at retirement and whether it is sufficient for your golden years. Using this information, the online pension calculator determines your expected monthly expenses after retirement.

2 What is the formula to calculate pension?

Plan your retirement income using the formula: FV = PV (1+r)^n, where FV is the Future Value, PV is the Present Value, r is the expected inflation (say 6%), and n is the time to retirement (say 25 years). For instance, if you need Rs 18,00,000 annually after retiring, calculate the corpus using an (estimated) 8% rate of return, a 6% inflation rate, and a retirement period of 20 years (assuming longevity of 20 years post retirement). The formula helps estimate the amount needed and the corpus required to generate the income for a secure retirement.

3 How much pension will I get for 10 years?

Using the retirement planning formula (FV = PV (1+r)^n), let's break it down. Assuming you're 35 with a Rs 50,000 salary, aiming to retire at 60, you have 25 years till retirement. If your desired annual post-retirement income is Rs 18,00,000, with an 8% return rate and 6% inflation, your pension calculation reveals the corpus needed for 10 years of post-retirement bliss.


Utilizing the formula provides insights into securing the ideal pension amount for the next decade, aligning with your financial goals and aspirations. For 10 years, you will get Rs 18,00,000 annually.

4 What will be my pension when I retire in India?

You are entitled to a fixed pension if you are a government employee. People working in private organisations and making PF contributions are eligible for pension under the Employees' Pension Scheme (EPS) on fulfilment of some terms and conditions.


In all other cases, you need to provide for your own pension after retirement. This can be done by investing in a pension plan while still working. The amount of pension you get after retirement will depend upon the amount you invest in the pension plan regularly, among other factors.

ALL CALCULATORS


More about Retirement planning

HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Life Insurance Popular Search

Popular Searches

Disclaimers

@As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.

@@Amount of guaranteed income will depend upon premiums paid subject to applicable terms and conditions.

This interactive does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. HDFC Life Insurance Company Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information reported by the interactive.

The information being provided through this interactive is provided for your assistance/ information only and is not intended to be and must not alone be taken as the basis for an investment decision (“Information”). The recipient/ user assume the entire risk of any use made of this Information. Each recipient /user of this interactive should make such investigation as it deems necessary to arrive at an independent decision while making an investment and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. HDFC Life Insurance Company Limited and its affiliates, group companies, sales staff, financial consultants, officers, directors, and employees may have potential conflict of interest with respect to any recommendation, related information or opinions.

This Information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This Information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject HDFC Life Insurance Company Limited and its affiliates/ group companies to any registration or licensing requirements within such jurisdiction. The distribution of this Information in certain jurisdictions may be restricted by law, and persons in whose possession this Information comes, should inform themselves about and observe, any such restrictions. The Information given in this interactive is as of the date of this report and there can be no assurance that future results or events will be consistent with this Information. This Information is subject to change without any prior notice. HDFC Life Insurance Company Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. However, HDFC Life Insurance Company Limited is under no obligation to update or keep the Information current.

Neither HDFC Life Insurance Company Limited nor any of its affiliates, group companies, directors, employees, sales staff, financial consultants or representatives shall be liable for any damages whether direct, indirect, special or consequential including health, physical well being, lost revenue or lost profits that may arise from or in connection with the use of the Information. Past performance is not necessarily a guide to future performance.

## Save 46,800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime.

ARN – ED/11/23/6501