Pension Calculator
Results
Total Contributions: ₦0.00
Interest Earned: ₦0.00
Total Pension Fund Balance at Retirement: ₦0.00
How to Use the Pension Calculator
- Enter Current Age: Input your current age.
- Enter Retirement Age: Input the age you plan to retire.
- Enter Monthly Contribution: Input the amount you contribute to your pension fund each month in Naira.
- Enter Additional Voluntary Contributions: Input any additional voluntary contributions you make each month in Naira.Enter Expected Annual Interest Rate: Input the expected annual interest rate on your pension fund (as a percentage).Click Calculate: Click the "Calculate Pension" button to see the results.View Results: The results will display your total contributions, interest earned, and total pension fund balance at retirement.
How to calculate pension from Salary in Nigeria
To calculate your pension in Nigeria, follow these steps:
- Determine Annual Salary: Calculate your total annual earnings before taxes and deductions.
- Years of Service: Count the total number of years you have worked.
- Expected Investment Growth: Estimate the annual growth rate of your pension fund investments.
- Retirement Age: Decide the age at which you plan to retire.
Formula Explained in Words
- Calculate Annual Contributions: Multiply your annual salary by the contribution rate.
- Total Contributions: Multiply the annual contributions by the number of years of service.
- Investment Growth: Apply the expected annual growth rate to the total contributions over the years until retirement.
Example
- Annual Salary: Determine your yearly earnings.
- Contribution Rate: Find the fixed percentage of your salary contributed by you and your employer.
- Growth Rate: Expected annual return on investments.
- Retirement Age: The age when you plan to start receiving your pension.
This method ensures you calculate the total pension available at retirement based on your contributions and investment growth over time.
Calculating Pension in Nigeria
- Annual Salary: Calculate your gross annual income.
- Contribution Rate: Typically, 18% of your salary (10% employer, 8% employee).
- Expected Investment Growth: Estimate annual growth rate of the pension fund.
- Retirement Age: Age at which you plan to retire.
Formula Explained in Words
- Annual Contributions: Multiply your annual salary by the contribution rate.
- Total Contributions: Multiply the annual contributions by the number of years of service.
- Investment Growth: Apply the annual growth rate to the total contributions over the years.
Calculating Gratuity in Nigeria
- Final Salary: Calculate your last drawn monthly salary.
- Years of Service: Total number of years worked.
Formula Explained in Words
- Monthly Gratuity: Multiply the final salary by a gratuity rate (e.g., one month’s salary for each year of service).
- Total Gratuity: Multiply the monthly gratuity by the total number of years of service.
Example for Gratuity
- Final Monthly Salary: Determine your last monthly earnings.
- Gratuity Rate: Often one month’s salary per year of service.
- Years of Service: Total number of years worked.
Multiply the final monthly salary by the gratuity rate and then by the years of service to get the total gratuity.