Pension Insurance Payout Calculator
Last updated: 2026-06-25
Your pension insurance payout is estimated by accumulating each monthly contribution at the expected return rate (monthly compounding) into a fund, then paying it out evenly each month over the payout term (assuming the balance keeps earning).
Monthly annuity ≈ fund × [monthly rate ÷ (1 − (1 + monthly rate)^−payout months)]. Fees and taxes are not included; this result is an estimate for reference only.
Enter payment & payout terms
Estimated monthly annuity
₩0
| Item | Amount |
|---|---|
| Total contributions (principal) | |
| Estimated fund (at end of payment term) | |
| Investment gain (fund − principal) | |
| Monthly annuity | |
| Annual annuity | |
| Total payout (over payout term) |
This is a simple estimate that excludes fees, risk premiums, and taxes, so your actual fund and payout may be lower. Exact figures follow the example table in your insurer's product brochure. This result is an estimate for reference only.
How to use
- Enter payment terms — enter your monthly contribution (in won) and the payment term in years.
- Enter return rate and payout term — enter the expected annual return (%) and the payout term in years.
- View the result — press calculate to see your total contributions, estimated fund, and monthly annuity in a table.
How a pension insurance payout is calculated
Pension insurance has two main phases. The first is the accumulation phase, where you pay premiums and build up a fund; the second is the payout phase, where that fund is distributed as an annuity. This calculator accumulates each monthly contribution with monthly compounding during the accumulation phase, and during the payout phase assumes the remaining fund keeps earning the same return rate while computing the monthly annuity.
| Phase | Formula | Meaning |
|---|---|---|
| Monthly rate | i = annual rate ÷ 12 | Converted to a monthly basis |
| Fund | P × [((1+i)^n − 1) ÷ i] × (1+i) | Contributions paid at the start of each month (annuity-due) |
| Monthly annuity | fund × [i ÷ (1 − (1+i)^−m)] | Even withdrawal over m payout months |
| 0% return | fund ÷ m | Simple split with no interest |
Here P is the monthly contribution, n is the number of payment months (payment term × 12), and m is the number of payout months (payout term × 12). A lifetime annuity has no fixed payout term, so you can approximate a rough monthly amount by entering your life expectancy (e.g. 25–30 years) as the payout term. Real lifetime annuities are computed using experience life tables and the crediting rate.
It is common to secure risk protection — health, death, critical illness — before preparing a pension. If you want to check coverage priorities before enrolling, review the protection that fits your age and family in the Coverage Analysis Guide, and learn about the health insurance copay structure in the Understanding Health Insurance Copay guide.
Frequently asked questions (FAQ)
How is a pension insurance payout calculated?
First, each monthly contribution is accumulated at the expected return rate (monthly compounding) to find the fund at the end of the payment term. That fund is then paid out evenly each month over the payout term, assuming the remaining balance keeps earning the return rate. This calculator gives a simplified estimate.
What value should I use for the expected return rate?
Use the crediting (declared) rate of a pension insurance product or the expected return of a variable annuity. Interest-linked products are typically around 2–3% per year, and some have a minimum guaranteed rate. Returns vary by market and product, so it helps to compare a conservative (low) figure with an optimistic one.
How does pension insurance differ from a pension savings (tax-advantaged) plan?
A pension savings plan offers a tax credit on contributions (e.g. up to a yearly limit, 13.2–16.5% in Korea) but taxes the annuity on payout. General pension insurance has no contribution tax credit, but if you meet conditions such as holding it for 10+ years the annuity can be tax-exempt. This calculator does not factor in taxes or fees.
Are fees (loadings) included?
No. Real pension insurance deducts fees and risk premiums from contributions before accumulating, so your actual fund may be lower than this result. Fees vary by product and payment term; check the accumulation example table in the product brochure before enrolling.
Is this result the same as my actual payout?
No, it is an estimate for reference. Your actual payout depends on fees, changes in the crediting rate, the annuity payout type (lifetime, fixed-term, inheritance), taxes, and more. The exact amount follows your insurer's product brochure and example table.
Related calculators & guides
Health Insurance Copay Calculator
Estimate your reimbursement from covered and non-covered medical costs.
Coverage Analysis Guide
Review coverage priorities by age, dependents, and current policies.
Understanding Health Insurance Copay
A guide to covered vs. non-covered care and copay rates by generation.
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Last updated: 2026-06-25