Annuity Calculator

What is an Annuity Calculator?

An annuity calculator is a simple financial tool that helps a Non-Resident Indian (NRI) in the UK to work out the future value of an annuity or the regular payments you can receive from it. It considers details like your investment amount, interest rate, and payment duration of your annuity plan. This tool is useful for retirement planning or ensuring a steady income. By using an annuity calculator, you can easily compare options and make informed decisions to meet your financial goals with confidence.

What are the Benefits of Policybazaar’s Annuity Calculator for an NRI in the UK?

The following list of benefits can help users in the UK to make informed financial decisions with Policybazaar's advanced, yet simple, annuity calculator:

• Effortless Retirement Planning: Instantly calculate your potential retirement income based on your desired lifestyle and savings.

• Personalized Insights: Receive tailored recommendations on annuity plans that best suit your individual financial goals and risk tolerance.

• Compare Plans Easily: Quickly compare annuity options from various providers, including guaranteed income, variable annuities, and immediate annuities, all in one place.

• Informed Decision-Making: Gain a deeper understanding of different annuity features, such as payout options, tax implications, and surrender charges.

• Save Time and Effort: Eliminate the need for manual calculations and tedious research, saving you valuable time and effort in your retirement planning journey.

• Access to Expert Guidance: Policybazaar provides access to expert financial advisors who can answer your questions and guide you through the annuity selection process.

How to Use an Annuity Calculator?

An NRI in UK can follow the steps mentioned below to use the Policybazaar annuity calculator:

• Visit the Policybazaar Annuity Calculator on this page.

• Enter the required information:

  • Your Age

  • Monthly investment amount

  • Expected rate of return

  • Pension allocation percentage

  • Expected rate of return from pension

• The calculator will automatically estimate the following details: 

  • Total Investment

  • Your Monthly Pension

  • Total Returns Earned

  • Maturity Amount

  • Maturity Amount Split:

    • Lumpsum Amount

    • Pension Wealth

Illustration of Policybazaar Annuity Calculator:

If you want to purchase an annuity plan at an age of 30 years with the following details:

• Your Age: 30 years

• Annuity Plan Maturity Age: 60 years

• Monthly Investment Amount: ₹10,000

• Expected Rate of Return: 9% p.a.

• Pension Allocation Percentage: 40%

• Expected Rate of Return from Pension: 6% p.a.

The calculator will automatically estimate the following details: 

• Total Investment: ₹36 lakhs

• Your Monthly Pension: ₹36,890

• Total Returns Earned at Maturity Age: ₹1.48 Cr.

• Total Maturity Amount: ₹1.84 Cr.

• Maturity Amount Split of ₹1.84 Cr.:

  • Lumpsum Amount: ₹1.11 Cr.

  • Pension Wealth: ₹73.8 lakhs

How Does an Annuity Calculator Work?

What is an Annuity Plan?

An annuity is an investment plan providing a guaranteed income stream in retirement. You invest a lump sum or make regular payments, and the insurer pays you regular income for life or a set period. It helps ensure financial stability post-retirement. It is best for an NRI to choose an annuity plan to enjoy guaranteed income and peace of mind in your golden years.

What are the Benefits of Annuity Calculator?

Annuity calculators are invaluable tools for anyone considering an annuity as part of their retirement planning. The following list shows how it can benefit you:

• Accurate Financial Planning:Calculate the future value of your annuity to plan your retirement income effectively.

• Customised Results:Adjust inputs like investment amount, duration, and interest rate to get tailored results.

• Time-Saving:Instantly get precise estimates without complex manual calculations.

• Informed Decisions:Compare various annuity options to choose the best for your financial goals.

Conclusion

An annuity calculator is a simple and effective tool to plan your finances for regular income during retirement. It helps estimate payouts based on your investment and chosen tenure, ensuring financial security. By using this tool, you can make informed decisions, customise your plans, and enjoy peace of mind for a stable and worry-free retirement.