PFRDA

How to Read an Annuity Rate Chart and Calculate Pension

Annuity Rate Chart

Sr No.	Annuity Option	Entry Age
Sr No.	Annuity Option	30-39	40-49	50-59	60-69	70-79	80-84	85
1	Annuity payable for life	6.55%	6.89%	7.54%	8.79%	11.52%	17.33%	21.90%
2.a	Annuity payable for 5 yrs and life thereafter	6.55%	6.89%	7.52%	8.70%	11.14%	15.11%	17.26%
2.b	Annuity payable for 10yrs and life thereafter	6.54%	6.87%	7.45%	8.51%	10.30%	12.11%	12.67%
2.c	Annuity payable for 15 yrs and life thereafter	6.53%	6.84%	7.37%	8.25%	9.34%	9.98%	10.09%
2.d	Annuity payable for 20 yrs and life thereafter	6.51%	6.80%	7.27%	7.94%	8.48%	8.66%	8.68%
3	Annuity payable for life with ROC on death of annuitant	6.21%	6.25%	6.30%	6.38%	6.50%	6.69%	6.80%
4	Annuity payable for life increasing at 3% simple p.a.	4.69%	5.06%	5.75%	7.00%	9.70%	15.34%	19.83%
5	Annuity payable for life with 50% annuity payable to spouse on death of annuitant	6.44%	6.69%	7.16%	8.07%	10.01%	14.07%	17.27%
6	Annuity payable for life with 100% annuity payable to spouse on death of annuitant	6.33%	6.49%	6.81%	7.46%	8.84%	11.84%	14.26%
7	Annuity payable for life with 100% annuity payable to spouse on death of annuitant with ROC on death of last survivor	6.19%	6.21%	6.25%	6.30%	6.40%	6.53%	6.62%

Entry age- The age at which the Annuitant buys the Annuity plan with his lump sum.
Annuity Option- For plan type/option (refer- Types of Annuity Plans).
For convenience and understanding purposes the entry age is taken as a slab of 10 years i.e. entry age and rate for somebody in the 30-40 age bracket would be same. Actually the rates differ at each age figure within an age bracket; rate for 35 years of age and 38 years will be different.

Calculating Annuity Amount using the Annuity Chart

Say, we try to calculate the pensions available to a person at different entry ages- 35 and 45 while choosing plans 1 through 7. The purchase price is all the three scenarios is being considered at Rs. 60,00,000.

The formula used is (refer section Pension/ Annuity Formula)-

Pension = Annuity Rate X Purchase Price

At age 35, choosing the Plan 4, the rate available is 4.69%. Hence, with a Purchase Price of Rs.60 Lakh the yearly Annuity is Rs. 60,00,000 X 4.69% = 2,81,200.
Similarly, at age entry age 45, for Plan 5, the rate available is 6.69% and yearly Annuity is Rs.60,00,000 X 6.69% = 4,01,160.
Similarly, at age entry age 75, for Plan 3, the rate available is 6.50% and yearly Annuity is Rs.60,00,000 X 6.50% = 3,90,280.

The Annuity Chart under various age and rate scenarios will be as follows-

Sr No.	Annuity Option	Entry Age
Sr No.	Annuity Option	30-39	40-49	50-59	60-69	70-79	80-84	85
1	Annuity payable for life	393,280	413,280	452,680	527,240	691,440	1,039,880	1,313,800
2.a	Annuity payable for 5 yrs and life thereafter	393,280	413,280	451,480	521,760	668,400	906,560	1,035,640
2.b	Annuity payable for 10yrs and life thereafter	392,680	412,080	447,240	510,840	618,120	726,600	759,920
2.c	Annuity payable for 15 yrs and life thereafter	392,080	410,280	442,400	495,120	560,560	598,720	605,400
2.d	Annuity payable for 20 yrs and life thereafter	390,880	407,840	436,320	476,320	509,040	519,360	520,560
3	Annuity payable for life with ROC on death of annuitant	372,680	375,120	378,160	383,000	390,280	401,160	407,840
4	Annuity payable for life increasing at 3% simple p.a.	281,200	303,600	344,800	419,960	581,760	920,520	1,189,560
5	Annuity payable for life with 50% annuity payable to spouse on death of annuitant	386,640	401,160	429,640	484,200	600,560	844,160	1,036,280
6	Annuity payable for life with 100% annuity payable to spouse on death of annuitant	379,960	389,640	408,440	447,840	530,240	710,240	855,680
7	Annuity payable for life with 100% annuity payable to spouse on death of annuitant with ROC on death of last survivor	371,480	372,680	375,120	378,160	384,200	392,080	396,920