Planning for retirement is critical to your financial health, providing security and comfort in old age. One important aspect of retirement planning is the regular income it provides, which, if possible, should be a pension per month amounting to ₹10,000 This article discusses several routes, like pension plans, government-sponsored programmes, and investments needed by individuals so that they can attain this financial feat. Retirement corpus can be structured as pension plans such as annuities and guaranteed income schemes. The National Pension System (NPS) enjoys a government guarantee of diverse investments with tax benefits and personalised pension fund management. Mutual funds and systematic investment plans (SIPs) are other great ways to create wealth with the help of professional fund management. The Post Office Monthly Income Scheme (POMIS), Senior Citizen Savings Scheme (SCSS), and Pradhan Mantri Vaya Vandana Yojana (PMVY) are government schemes targeting risk-averse investors who prefer fixed returns. Lastly, the EPF provides retired salaried people with a proven pension scheme that guarantees monthly pensions.
Want to find detailed insights on getting a pension of ₹ 10,000 per month for an enjoyable retirement? Continue reading.
What are the Steps to get pension of ₹10000 per month?
It is natural for everyone to reach retirement, and it should be prepared for in advance so that financial security celebrated with a comfortable lifestyle can be achieved. A pension per month of ₹10,000 is enough to provide the retired person with a stable income. This article will discuss various avenues of investment and government-sponsored benefits that can help you achieve a pension per month worth ₹ 10,000
Pension Plans
A pension plan has the same framework as an annuity or guaranteed income plan, which aims to build a capital that creates regular monthly pension payouts after retirement. These plans provide assured returns and will help create a retirement corpus. Investing in a pension plan gives ₹10,000 per month if one invests accordingly. An annuity plan is an insurance policy to generate a fixed income for some number of years or terms until death. This plan is a constructive way for those who wish to have a regular income after retirement.
An immediate annuity is when an individual invests some amount during a specified period and ascertains a fixed income for life. Well, assured pension plans deliver a guaranteed return and offer the lump sum created at maturity, which can be used to ensure regular payments.
National Pension System (NPS)
The National Pension System (NPS) is a voluntary savings programme that allows people to make regular payments towards their planned future through a pension. It is an ongoing struggle to discover a permanent solution to ensure that every retired Indian receives adequate retirement income.
The objective of NPS, a long-term voluntary retirement benefit scheme, is to enable the habit of continued savings. Individuals in their active earning years can contribute to the NPS and get a monthly pension after retiring. Financial advisors need to be consulted, and the required pension for receiving ₹10,000 per month has to be determined.
Mutual Funds
Mutual funds also provide an investment opportunity to save money for retirement. A fund manager manages a mutual fund, which is an amassed amount. It is an institution that pools cash from several unit investors in the same investment direction and channels it to stocks, bonds, and money market instruments.
Based on investors' risk assessments, mutual funds are available in different forms, such as equity, debt, and hybrid. Spend on mutual funds through SIP over a long period of time. Alternatively, if you are interested in a higher return, equity-focused funds might be a better choice, although they are risky.
The Post Office Monthly Income Scheme (POMIS)
One such plan is the Post Office Monthly Income Scheme (POMIS). If you spend a certain amount, you will get monthly cashback. You can buy this at any post office, as the name suggests. The period of the scheme is five years, and it offers an interest rate of 7.4%.
The monthly pension of ₹10,000 is subject to the amount invested, and one can invest POMIS. The strategy may be a viable alternative for conservative investors seeking consistent income.
All interested parties should know that interest earned through POMIS is taxable under current IT legislation.
Senior Citizen Savings Scheme (SCSS)
This is a government-guaranteed means of retirement savings for those 60 and older. In 2004, when the Indian government started this programme, they desired to provide retired people with a regular source of income. The plan is one of India's most effective ways to save money, and individuals who subscribe get reasonably good results. The state supports the plan, so the losing money option practically does not exist. The scheme has an interest rate of 8.20% p.a. with a duration of five years.
An individual can invest up to Rs 30 lakh, as detailed in the union budget for 2023.
The Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The PMVVY is one of the government-supported pension schemes for the elderly. The plan provides a fixed rate of return of 7.4% per year for ten consecutive years. One of the best options for risk-averse investors to get ₹10,000 per month as a pension is investing in the PMVVY scheme.
It is available only for senior citizens, and the scheme can be bought from LIC.
Employee Provident Fund (EPF)
The EPF is a retirement benefits programme that all salaried employees have access to. The scheme is a government-supported plan that offers permanent accrual income after retirement.
Consistent investment in the EPF will bring you a substantial corpus to help with ₹10,000 per month in pensions. It is a good form of passive income after retirement. The scheme, however, provides tax relief and guaranteed returns to every investor.
Conclusion
Finally, a retirement pension of ₹ 10,000 per month has to be thoughtfully planned. The variety of offerings, ranging from pension plans to government programmes and investment tools, provides selection options based on their appetite for risk as well as financial goals. Regardless of the chosen path, whether choosing guaranteed returns available in schemes such as POMIS and SCSS, exploring market-linked opportunities that come with NPS, or availing of professional management services provided by mutual funds along with SIPs investments, each leads to one single direction—financial security in later years. Individuals must define their situations, risk preferences, and investment tenor to develop a personalised retirement plan. However, through meticulousness in treading these paths, one can forge a safe refuge of decadent and pleasant retirement with an undisturbed monthly pension flow amounting to ₹ 10000.