Pension calculator for Pakistan

A VPS is a personal retirement fund run by an asset management company and regulated by the SECP. You contribute regularly, choose an allocation between equity, debt and money market sub-funds, and the money grows until retirement. Islamic VPS funds invest only in Shariah-compliant assets.

It grows your current savings and your monthly contributions at the annual return you choose until your retirement age, compounding monthly. It then shows the monthly income that pot could pay if drawn down over the number of years you choose, assuming the same return. It is a projection, not a forecast.

It depends on your allocation. Islamic pension money market and debt sub-funds have tracked profit rates in the economy, while equity sub-funds have been higher but far more volatile. Check current pension fund returns in the rankings and use a conservative figure for a long horizon.

Contributions to an approved pension fund can qualify for a tax credit for salaried and business individuals, within limits set by income tax law. The limits change with budgets, so confirm the current rules with your pension fund manager or a tax adviser.

You can, but early withdrawals may lose tax benefits and be taxed. At retirement you can usually withdraw part of the balance as a lump sum and use the rest for an income plan. Rules are in each pension fund’s offering document.