What is the difference between GPF, EOBI and VPS?
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GPF (General Provident Fund) is for government employees —
only the employee contributes (8.33%). EOBI (Employees'
Old-Age Benefits Institution) covers private sector workers
with 5% employee + 5% employer contributions. VPS (Voluntary
Pension Scheme) is a SECP-regulated private pension where both
parties contribute freely — typically 10% + 10%.
How is the monthly pension calculated?
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The pension uses the SWP (Systematic Withdrawal Plan) formula:
Monthly Pension = Corpus × r × (1+r)^n ÷ ((1+r)^n − 1), where
r is the monthly drawdown return rate and n is the total
pension months. This ensures the corpus depletes to zero at
the end of your desired pension period.
What return rate should I use?
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During accumulation, Pakistani pension funds targeting
moderate risk typically return 12–18% p.a. For drawdown, a
conservative 10–12% is safer. VPS equity funds can return 20%+
but carry market risk. This calculator uses your accumulation
rate for drawdown as well — you can set them the same or
adjust mentally.
Is VPS contribution tax-deductible in Pakistan?
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Yes. Under Section 63 of the Income Tax Ordinance 2001,
contributions to an approved VPS (up to 20% of taxable income)
are deductible. This makes VPS one of the most tax-efficient
savings vehicles in Pakistan.