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Finance Calculators

Annuity vs SWP Comparison

Compare a guaranteed annuity payout rate against simulating the same withdrawal by staying invested.

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The lump sum you have to invest, e.g. 1.5 Cr or 40 L.

The annual payout rate you've been quoted, as a percentage of the corpus.

Your next decision

How should I withdraw from my corpus?See the full range of simulated outcomes if you stay invested instead

Frequently Asked Questions

Which option is better?
There's no universally right answer, and this tool deliberately doesn't recommend one — it's a tradeoff. An annuity gives you a fixed, guaranteed payout for life, with no market risk, but typically means giving up the underlying capital. Staying invested (SWP) keeps your capital flexible and gives it a chance to grow, but your odds of lasting the full period aren't guaranteed.
Why does the SWP side use the exact same payout amount as the annuity?
So the comparison is apples-to-apples — this shows what would happen if you tried to withdraw the identical guaranteed amount by staying invested, rather than comparing two different withdrawal amounts.
Does this account for the specific product I'm being offered?
No — real annuity products vary widely (return-of-purchase-price options, joint-life cover, deferment periods, and more), and this tool doesn't model any specific provider or product. Use the rate you've actually been quoted as a starting point, and treat this as an illustration of the underlying tradeoff, not a product comparison.