Work out retirement benefit total instantly with clear inputs, formula shown and shareable results.
Retirement settlement is the sum of gratuity, provident fund, leave encashment and any commuted pension lump sum. Converting the total into a sustainable monthly income at a conservative 4% withdrawal rate is the most useful way to judge whether it is enough.
Total corpus
Total = Gratuity + Provident fund + Leave encashment + Commuted pension
Sustainable income
Monthly income = Total corpus x 4% / 12
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
Rarely. Gratuity and leave encashment are usually exempt only up to prescribed limits, and rules differ between government and private employment.
It is the widely used heuristic for a 30-year retirement horizon with an inflation-adjusted income. Lower rates are safer for longer horizons.