Pension Calculator
Calculate your total pension corpus with monthly contributions and expected returns. Project retirement savings with yearly growth charts and income estimates.
About This Calculator
The Pension Calculator helps you estimate your retirement corpus based on your current age, retirement age, existing savings, monthly contributions, and expected investment returns. Whether you are planning for retirement in India, the US, the UK, or any other country, this tool provides a clear projection of your pension savings growth over time.
The calculator uses standard compound interest formulas: your current savings grow at the expected annual return rate compounded yearly, while your monthly contributions grow using the future value of an annuity formula with monthly compounding. The 4% withdrawal rule is then applied to estimate your monthly retirement income -- a widely accepted benchmark for sustainable withdrawals over a 30-year retirement.
Regional Notes
India: The NPS (National Pension System) offers tax benefits under Section 80CCD(1B) up to ₹50,000. EPF and PPF are additional retirement savings vehicles with guaranteed returns. Typical long-term equity returns are 10-12%.
US: 401(k) and IRA accounts offer tax-advantaged retirement savings with employer matching in many cases. The full Social Security retirement age is 67. Typical long-term return expectations are 7-10% for a diversified portfolio.
UK: Workplace pensions with auto-enrolment require minimum contributions of 8% (5% employee, 3% employer). The State Pension provides £11,502 per year (2024-25). Typical pension fund returns range from 5-8% depending on the risk profile.
This calculator provides estimates only and does not account for taxes, inflation, or changes in contribution amounts over time. For personalized retirement planning, consult a qualified financial advisor.
Frequently Asked Questions
How does the Pension Calculator work?
The Pension Calculator computes your retirement corpus using compound growth on your current savings and monthly contributions. It projects your savings forward until your retirement age and estimates the monthly retirement income you can expect using a 4% withdrawal rate.
How is the pension corpus calculated?
The corpus is calculated by applying compound growth to your current savings over the years until retirement, plus the future value of your monthly contributions using the annuity formula. The total is the sum of both components grown at your expected annual return rate.
What is a good monthly retirement income in India?
A comfortable monthly retirement income in India depends on your lifestyle and city. For tier-1 cities, aim for ₹40,000-60,000 per month; for tier-2 cities, ₹25,000-40,000 may suffice. Using the 4% rule, a corpus of ₹1 crore generates approximately ₹33,000 per month.
What retirement age should I use for the US?
In the US, the full retirement age for Social Security is 67 for those born after 1960, though you can retire as early as 62 with reduced benefits. Many financial planners recommend planning to retire between 65 and 67 depending on your health and savings.
What is the State Pension age in the UK?
The UK State Pension age is currently 66 for both men and women, rising to 67 between 2026 and 2028, and 68 between 2044 and 2046. You can retire earlier with a private or workplace pension, but the State Pension will only start at the official age.
How much should I save for retirement each month?
A common rule of thumb is to save 15% of your pre-tax income for retirement. In India, aim to save 20-30% of your monthly income if starting in your 30s. In the US and UK, workplace pension schemes with employer matching can significantly boost your savings.
What is the 4% withdrawal rule for retirement?
The 4% rule suggests you can withdraw 4% of your retirement corpus in the first year, adjusted for inflation each year, without running out of money for at least 30 years. For a ₹1 crore corpus, that means ₹40,000 in the first year, or about ₹3,333 per month.
Is the Pension Calculator free?
Yes, it is completely free to use with no registration required. Your inputs are saved in the URL so you can bookmark and share your pension plan calculations with family or a financial advisor.