Get 30K Pension Per Month
In today’s busy world, when no one is there to look after you at your second innings, planning Retirement Pension Plan and your second innings is extremely important and crucial these days just to assure a stable and well maintained financial future. However, due to rapid increase in the financial market in each and every passing year, limited saving amounts or money saved in the bank account will not stand enough to fulfill the demands and needs during the whole retirement period. Therefore, it is recommended to opt for a wise investments plans to be eligible to receive a decent amount, say 30k pension per month in the future.
How to Get 30K Pension Per Month Through Investment?
One can get Rs. 30,000 pension amount per month or much more, very easily if the investment plan is designed systematically. Listed below are some of the major factors that help in regulating, the highest amount that an investor is eligible to receive as the pension amount after retirement:
1. The Age of Investment: If you have started your investment plan at an early age, than in that case, even the smallest amount will be a boon, which means, more beneficial.
2. Pension Option: Your choices of investment plays a major role in regulating your future pension amount. On one hand, where equity funds serves high returns with high-risk involvement, on the other hand, there are few of the plans which offers guaranteed returns with no risk involvement. For an example, if an investor wants Rs. 30,000 pension per month, they have to invest approximately Rs. 5 Thousand per month for around 10 – 15 years.
3. Tax Deductions: In case of an investor does not plan their investments properly and wisely, a hefty amount of their savings can go into the income tax. All the investment plans should be expanded so that minimum taxes are imposed, and more profits are saved.
Investment Options to Get 30k Pension Per Month
Expecting a pension of Rs. 30,000 per month is not a huge amount, and an investor can swiftly earn much amount of a pension if the investment is done wisely. One can go through some of the below mentioned investment options to secure a monthly pension of Rs. 30,000 after retirement.
1. The National Pension Scheme (NPS)
The National Pension Scheme or NPS works under the PFRDA that is, Pension Fund Regulatory and Development Authority, which is backed up by the government of India. It is a voluntary retirement plan. Under the NPS scheme all the investors can assign a certain amount of money from their monthly income towards the NPS account during whole of their employment tenure. With this, by the retirement age, the investor is eligible to withdraw up to 40% of the constructed or the insured amount, and the rest 60%, have to be reinvested in the annuity.
Example
1. Let us try to understand how to get a 30 thousand pension per month if the investment is done in the NPS scheme with the help of the following example:
Mr. Ram is 32 years old and he wishes to save a sum of his income to his NPS scheme till the age of 60 years. Assuming that the expected rate of return on the investment is 10%:
The monthly amount which is required to be invested for the coming 30 years will be Rs. 7,000 for monthly income.
Now, after the 30 years of investment the total invested amount will reach Rs. 25,20,000.
As it is stated and told in the beginning that under NPS, a minimum of 40% of the insured sum is invested in annuity. The annuity value is now around Rs. 63.82 lakhs, which is the approximate value.
- Expecting an annuity rate of 6%, an investor will be eligible to receive a pension amount of Rs. 30,000 approximately per month from the NPS scheme.
2. Unit Linked Insurance Plans
This plan is functional when an investor wants both insurance and investment benefits at the same time, ULIPS or Unit Linked Insurance Plans are the plans made exclusively for the investors like these. This insurance plus investment plan helps in the formation and management of wealth along with the extended protection provided to the family of the insured after their sudden demise. Therefore, this plan is undoubtedly the best in this case and because of its benefits and features it is gaining huge popularity among the investors these days and it is seen as one of the best sources of investment for moderate to high risk-taking investors.
The investment value in the ULIP is divided into 2 distinct parts:
1. One part of the premium is made to serve as the life insurance coverage.
2. And, the other remaining part of the premium is designed for use in the debt and equity amount, to increase the investments and ultimately the financial benefits.
It is extremely very important to note the investor’s financial future goals before deciding and fixing the amount that is to be invested in the ULIP plan.
There are several benefits which are offered under a ULIP plan, which includes easy fund switching, portfolio diversification, choosing funds per your own preference, and more.
Example
An investor wish to invest a certain sum total of around a fixed value to get a 30k pension per month under a ULIP plan. The certain decided or fixed value is of Rs. 7,000 to Rs. 9,000 per month for a tenure of 10 approximate years and the policy continuation period of the plan is for a total of 20 years. At the end of the tenure, a lump sum payable amount of Rs. 77 lakhs will be generated.
3 Fixed Deposits
An investment technique offered by several different banks and other financial institutions in India, the Fixed Deposits provides a high rate of interest over a tenure that can vary from 7 days to 10 years.
The Fixed Deposit has a fixed rate of interest at the time of opening. It is a non fluctuating zone of investment as it is not market linked, and so there is absolutely zero changes in the internet rate as per the financial market fluctuations.
It is very easy and quick to own a Fixed Deposit from any authorized bank or financial institution, and your returns can be calculated in an extremely hassle-free manner through the FD calculators.
An investor can keep one-time approximate sum total money in their FD account for a duration varying between 7 days to 10 years and earn satisfactory returns at the end of the chosen duration.
Example
If Rs. 1 lakh is invested at the rate of 6.5% per annum in an FD for 10 years, the estimated return value on the investment will be approximately Rs. 90,000, making the maturity amount Rs. 1,90,000 approximately at the end.
* Pension Plans with Guaranteed Returns
The main aim and focus of the Pension Plan or the retirement plans is to serve a fixed monthly income to owner of the plan even after the retirement age so as to serve the retired person the perks of life. These plans help the investor to live a retired life financial stress free. The Pension plans help in the following:
1. Piling up savings for a long term period.
2. Managing with all the uncertain and unforeseen financial situations post retirement.
3. Serving as a cushion of financial comfort.
4. There are a couple of categories of pension plans available in the market to choose from to satisfy all the different types of requirements of the investor.
5. Each pension plan offers its own bag full of benefits and returns. In order to dig out the most of the benefit or return from any of the pension plan, it is recommended to start the investment at the appropriate age.
Features and Benefits of Pension Plans
1. Guaranteed Pension or Income
This allows you to get a fixed and regular income even after retiring which is the deffred plan or can also get the amount immediately after investing that is the immediate plan, the return is based on how you invest. This provides a financially independent life even after retirement. You can use a retirement calculator to get a rough estimate of what is the approximate amount that you require after your retirement.
2. Tax-Efficiency
Some pension plans provide tax immunity which is specified under Section 80C. If you wish to invest in a pension plan, then the Income Tax Act, 1961, provides a significant tax break under Chapter VI-A. For an example, the Atal Pension Yojana and the National Pension Scheme are the plans to tax deductions which falls under Section 80CCD.
3. Flexibility
Retirement plans are essentially a plan that offers extremely low liquidity that is flexibility. However, there are some plans designed in a maaner that allows withdrawal even during the fund collection phase of the plan. This will ensure amount to fall back on the running and use during the emergencies without having to stay dependent on the bank loans or others for financial requirements.
4. The Powering Age
This is the age when you initially start to receive the monthly pension. For instance, most of the pension plans put their minimum powering age at 45 years or 50 years. It is changeable up to the age of 70 years, though few of the companies have their vesting age up to 90 years as well.
5. Duration of Fund Collection
An investor have the option to choose either choose to pay the premium in the periodic intervals or at once as a lump sum investment. The wealth will gather accordingly over the time to build up a wholesome amount which is the some of the investment and the gains. For instance, if you start investing at the age of 30 and take it forward in investing until you turn 60, the collection period will be 30 years. Your pension for the chosen period primarily comes from this collection.
6. Payment Period
Investors tend to confuse the payment period with the duration of fund collection. This is actually the period in which you receive the pension post-retirement. For an example, if one receives a pension from the age of 60 years to 75 years, then the payment period will be 15 years. Most plans keep this period distinct from the duration of fund collection, though some plans allow either partial or full withdrawals during the duration of fund collection as well.
7. Surrender Value
Surrendering one’s pension plan before maturity is not a wise move even after paying the required minimum premium. This will result in the investor having no more benefit of the plan, including the assured amount and life insurance cover.
In the End
In today’s marketing world, it is extremely very easy for an individual to receive a 30k pension per month depending upon the investments that you have made and also the time. The correct and wise investment at the right time is always beneficial. But unfortunately, people tend to extend and delay the planning about their retirement, welcoming a stressful life ahead which will be full of financial burdens. Knowing about the life uncertainity, it is very important to have a hand running in the financial space as well even after retirement, which is possible only with the help of pension amounts being regularised in your account every month.
Tips to by heart before buying a Pension Plan
1. Prepare a check list of your future financial goals.
2. Take in consideration your current income and then fix an amount to be invested in a certain pension plan.
3. Research is the key. Research very well from all the available plans, go through thoroughly from all the benefits served along with the post maturity features and choose wisely.
4. Before buying a plan, understand the plan thoroughly and then hop on investing in it.
NOTE:- Do not opt a plan only because of tax benefits. Before investing be well prepared with all the benefits and features of the plan.