Pension Calculator (Monthly Retirement Cash Flow)

Design a resilient monthly pension income stream for your post-retirement years. Optimally distributes your lump sum retirement corpus across government guaranteed schemes (SCSS, POMIS), immediate annuities, and tax-efficient SWP.

Allocating a ₹1 Crore retirement corpus across SCSS, POMIS, Annuity, and SWP produces a combined monthly pension of ₹60,998 (₹7,31,975/year) with a blended yield of 7.32%.

Total Corpus & Portfolio Yield

Calculate regular monthly pension by distributing retirement corpus across SCSS, POMIS, Annuity, and SWP.

Total Accumulated Retirement Corpus

₹

Proceeds from EPF, PPF, Gratuity, Superannuation, and Mutual Funds.

Expected Mutual Fund SWP Withdrawal Rate (% p.a.)

Conservative hybrid / debt SWP withdrawal rate: 7%–8%.

Recommended Allocation Buckets

Senior Citizen Savings Scheme (SCSS)

Allocated: ₹30,00,000 @ 8.2% p.a.

₹20,500/mo

Sovereign Guaranteed

Taxable as interest; TDS threshold ₹50,000 u/s 194A for seniors.

Post Office Monthly Income Scheme (POMIS)

Allocated: ₹9,00,000 @ 7.4% p.a.

₹5,550/mo

Sovereign Guaranteed

Taxable at individual slab rate (zero TDS at post office).

Immediate Annuity (Life with ROP)

Allocated: ₹30,50,000 @ 6.25% p.a.

₹15,885/mo

High (Insurer)

Taxable as regular pension income at slab rate.

Debt / Hybrid Mutual Fund SWP

Allocated: ₹30,50,000 @ 7.5% p.a.

₹19,063/mo

Market Linked

Highly tax efficient (only capital gain portion is taxed, not principal).

Combined Monthly Cash Flow7.32% Blended Yield

Total Monthly Pension

₹60,998

Annual Guaranteed Cash Flow: ₹7,31,975

SCSS Monthly

₹20,500

8.2% Sovereign

POMIS Monthly

₹5,550

7.4% Post Office

Annuity Monthly

₹15,885

6.25% Lifelong

SWP Monthly

₹19,063

Tax efficient

Portfolio Design:

Allocating your ₹1,00,00,000 corpus across sovereign guaranteed schemes (SCSS, POMIS), lifelong annuity, and tax-efficient SWP generates a combined regular monthly pension of ₹60,998 (₹7,31,975/year) with a blended portfolio yield of 7.32%.

Total Monthly Pension

₹60,998

Blended Yield: 7.32%

Scheme rates reflect currently active Government of India notifications (SCSS @ 8.2%, POMIS @ 7.4%).

What it is:: A multi-asset Indian retirement cash flow and pension allocation calculator.
What it calculates:: Monthly pension payouts across SCSS, POMIS, Annuities, and SWPs, along with overall portfolio yield and tax breakdown.

Key Assumptions

SCSS statutory maximum limit is ₹30 Lakhs per individual.
POMIS statutory maximum limit is ₹9 Lakhs single / ₹15 Lakhs joint.
Blended allocation delivers regular monthly retirement liquidity.

How it works

Senior Citizen Savings Scheme (SCSS): Sovereign-guaranteed 8.2% quarterly interest for individuals aged 60+. Maximum investment is ₹30 Lakhs (revised in Budget 2023).

Post Office Monthly Income Scheme (POMIS): Sovereign-backed 7.4% monthly interest payout. Maximum investment is ₹9 Lakhs for a single account and ₹15 Lakhs for a joint account.

Life Annuity: PFRDA/IRDAI empaneled insurers provide fixed lifelong monthly pensions with 100% Return of Purchase Price (ROP) to nominees.

Mutual Fund SWP: Systematic Withdrawal Plans from hybrid or debt mutual funds provide regular monthly cash flow where only the capital gain portion is taxed, preserving capital efficiency.

Formula

Total Monthly Pension = (SCSS Interest ÷ 12) + POMIS Monthly Interest + (Annuity ÷ 12) + SWP Monthly Withdrawal

SCSS: = 8.2% annual sovereign rate paid quarterly
POMIS: = 7.4% annual sovereign rate paid monthly
Annuity: = Fixed lifelong pension from insurance company
SWP: = Tax-efficient systematic withdrawal from mutual funds

Blends sovereign safety with inflation-beating market yield to protect capital and maximize take-home income.

Example calculation

₹1 Crore Retirement Corpus Distributed for Monthly Cash Flow

Senior Citizen Savings Scheme (₹30L @ 8.2%): ₹20,500/mo
Post Office MIS (₹9L @ 7.4%): ₹5,550/mo
Life Annuity with ROP (₹30.5L @ 6.25%): ₹15,885/mo
Mutual Fund SWP (₹30.5L @ 7.5%): ₹19,063/mo
Combined Regular Monthly Pension: ₹60,998
Weighted Portfolio Yield: 7.32% p.a.

Frequently asked questions

What is the safest way to get ₹50,000 monthly pension in India?

To generate a secure ₹50,000/month (₹6 Lakhs/year) pension, you can deposit ₹30 Lakhs in SCSS (yielding ~₹20,500/month at 8.2%), ₹9 Lakhs in POMIS (yielding ~₹5,550/month at 7.4%), and allocate the remaining ₹40 Lakhs into a conservative hybrid mutual fund SWP or immediate annuity.

How is pension income taxed in India?

Interest from SCSS and POMIS is added to your total income and taxed at your applicable slab rate. PFRDA annuity pensions are taxed as salary/other sources. Mutual fund SWP is the most tax-efficient, as only the capital gains fraction of each withdrawal is taxed, while principal redemption is 100% tax-free.

What happens to the invested corpus after death?

In SCSS, POMIS, and Annuity with Return of Purchase Price (ROP), 100% of the invested principal is refunded to your registered nominee or legal heirs upon demise.

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