How to Get a ₹50,000 Pension Per Month?

Who does not want to enjoy life after retirement? You might also have set certain goals, like going on a dream vacation, devoting time to a long-lost hobby, or spending time with your family. Do you know what can improve your chances of fulfilling these dreams? A steady income post-retirement. While you can decide the amount depending on your needs and standard of living, a ₹50000 pension per month can ensure a comfortable life in most cases.

Ways to Get a ₹50,000 Pension Per Month

First things first, you should stop relying solely on savings. Your savings can quickly deplete in the face of inflation or any unforeseen expenses.

Then, how to get ₹50000 pension per month? Creating a retirement corpus is the way to go!

Start Early

When you are in your 20s, retirement seems a long way ahead. You tend to procrastinate on retirement planning. But if you want to benefit from the power of compounding, you cannot delay creating your retirement corpus. Start setting aside a portion of your current income to your retirement corpus and stay consistent with it. The longer the investment tenure, the more return you will be able to generate.

Diversify Your Investments

Ever heard the advice to not put all your eggs in one basket? This holds true for investments as well. You should invest your money across assets classes to minimize the overall risk and maximize returns. Ensure a mix of safe as well as growth-oriented investment options.

Have Multiple Income Sources

In addition to creating a retirement corpus, you should also try increasing your income sources. It can include rental income or starting a side business. Even if your market returns reduce in a particular year, you can still be assured of money coming in, which can lead to enhanced financial security and peace of mind.

Investment Options to Get ₹50,000 Pension Per Month

Let us say you have decided to create a retirement corpus and arranged money for it. The next natural question will be: where should you invest your money? The choice becomes all the more complicated as there are multiple options available in the market.

Unit-Linked Insurance Plans

What if you are asked to choose between investments and insurance? A difficult choice, right? While investments offer returns, insurance manages risks. The good news is that you can combine the benefits of both these instruments. When you invest in a Unit-Linked Insurance Plan (ULIP), part of your premium goes towards providing insurance coverage, while the remaining amount is invested in market-linked funds.

Pension Plans

You can also invest your money in pension plans by making premium payments during your working years. Once you retire, the plan will offer a fixed monthly payout. Moreover, you can choose the investment option and payout frequency that suits your financial goals.

Annuity Plans

Another popular investment option is to subscribe to an annuity plan by making a lump sum payment. In exchange, you will receive regular income after retirement. You can choose between immediate annuities and deferred annuities. While immediate annuities start paying out soon after purchase, the latter begin after a set period.

Capital Guarantee Plans

Not every investor is the same. If you are someone who wants a moderate return but with minimum risk, capital guarantee plans are the right fit for you. This guaranteed pension scheme will protect the principal amount and offer a fixed return. Capital guarantee plans can be part of a balanced portfolio to ensure safety along with growth.

National Pension Scheme (NPS)

The government also recognizes the importance of a steady income after retirement. Thus, it has launched the National Pension Scheme to promote social security among the elderly population. What is it about? Under the scheme, you can contribute regularly to your NPS account to create a corpus. Upon retirement, a portion of your corpus can be withdrawn as a lump sum, while the remaining amount is used to purchase an annuity for market-linked returns.

Fixed Deposits (FDs)

Now, who doesn’t know about Fixed Deposits? They have been traditionally preferred because of the trust placed on banks in the Indian economy. While it is true that FDs do not offer high returns compared to other options, they are a secure way to generate a fixed income post-retirement.

Senior Citizen Saving Scheme (SCSS)

Is there a government-backed scheme that ensures safety and gives higher interest rates compared to regular FDs? The Senior Citizen Saving Scheme (SCSS) is one such scheme that has been designed for individuals above 60 years of age. You can generate regular income post-retirement with this scheme.

How To Plan for Monthly Income After Retirement?

There is no specific rule or parameter for planning post-retirement income. Your plan for how to get ₹50000 pension per month will depend on your individual circumstances, financial goals, and risk tolerance.

Calculate Your Retirement Needs

The first step therefore becomes to assess your retirement needs. How much expenses are you expected to incur post-retirement? What is your desired lifestyle? These questions will help you determine how much you will need per month. Do not forget to account for inflation and keep a buffer for unexpected expenses.

Get Clear About Your Corpus Amount

Next, you should determine how much you can set aside from your current income to create a retirement corpus. Though your corpus needs to be substantial to ensure income for 20-30 years post-retirement, you should never overstretch your budget.

Analyze Investment Options

Now, you know the retirement corpus you will be able to create, as well as the monthly income you would require post-retirement. The next step? Evaluate the different investment options discussed above and see which instrument will be able to give you the desired income with your corpus amount.

Review and Adjust

Do not stop here! As the market conditions keep changing, investment strategies must also change. Make it a point to regularly review your investment performance and adjust your portfolio based on market trends, interest rates, and changes in your financial situation.

Conclusion

You now have all the information needed to receive ₹50000 pension per month post-retirement. As mentioned above, you should not delay this step further; get started today.

If you are still confused about which investment plan to choose and how to plan your expenses, do not shy away from seeking professional advice. Financial advisors or professionals can help you create a customized retirement plan and a well-rounded portfolio. The result? A comfortable retirement with a steady income!

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