How to invest money to Get 50k Pension?
The first step to get pension is to invest which also plays a significant role in finances. The Retirement Pension Plan income we receive every month entirely depends upon the amount we have invested and your retirement age. When you are younger that is when you are in your early 30s you will more time to invest until you retire. But if you invest in later years, you need to invest more. For monthly pensions the choice of investment must be right or else we might end up in risk. We should invest in equity market to receive high pension. We need to deposit 9000 per month for a period 10 to 12 years so that we can receive 50k pension every month. But we must never invest in guaranteed monthly income, in guaranteed monthly income we invest lesser amount in which we receive less returns after retirement. For better investment you try SIP investment program which is balanced in which you invest certain amount and you diversify the fund which you have invested into equities and debt funds. Let us learn more about the investment options
National pension scheme – This plan is one of the most widely used pension scheme among people. This plan has been launched by Government of India. This plan offer monetary benefits for government employees after retirement. This can help them in future in which they would require money during emergency situations. The funds which are received are invested in money market, dated government securities, bonds, shares and debentures. As soon as the government employee attains the retirement age he/she can withdraw certain percentage of the invested amount.
Calculation of NPS – Let us consider a case study, let us consider Latha a government employee who is 25 years old requires pension after the age of 60. If you would like to receive 10% from your investment you need to invest Rs.11000 per month so that you can receive a lump sum amount of 39lacs after retirement. You need to invest 40% of your sum that you can receive annuity of 1crore under national pension scheme. The annuity rate should be 6% per month so that you can receive 50k pension per month from national pension scheme
Unit linked insurance plan – This type of plan is linked with market investment and this plan offers insurance protection plans which provide returns based on the performance of market. After your investment period is completed, you will receive income. The premiums which we pay periodically are used as life covers. In case if you are not satisfied you have an option to switch between the existing funds. As the maturity period goes on you can be eligible for exemption of tax according to income tax act. To receive 50k as pension you need to invest 11k to 12k per month for a period of 25 years so that you can earn your pension after 30 years
Annuity plan – This plan is a periodic payment based on the amount which we have invested. These annuities need to be paid monthly but they should be paid thought the life time, the investment under this plan should be done lump sum. The two types of annuities are immediate annuities which are paid monthly and deferred annuities should be paid at the end of investment period. Under this plan the investment is large and hence it is well suitable for people who have large property and generate income in future
Pension Plans with guaranteed returns
This type of plan is similar to the regular Pension Plan it also provides insurance protection. This plan provides monthly income after your retirement period and also provides financial security to your children and spouse if you are not with them. They offer lump sum amount after retirement that is the amount which you have invested for 25 years. If you need to receive 50k pension you need to invest for a period for a period of 10years this is beneficial for people who are planning for early retirement
Mutual Funds – Mutual funds are market linked avenues the returns are offered from equity and debt market. The high risks faced by the investor can be balanced by systematic investment plans. If we have received at most wealth through mutual funds, the additional fund can be allocated to annuity plan this will provide lifelong income along with life insurance cover. In case if you invest 20k for 20 years you will receive 28.8lacs if you have a return rate of 12% after 20 years the amount invested will become ₹.1crore and 50k per month can be gained by reinvestment.
Conclusion – From this write up we understand the significant uses of pension and how to receive ₹ 50k per month as pension. We might think it is a complicated process but if it is done systematically it is simple. The premiums and amount which needs to paid should be done before due date before any problem occurs. The pension can be received in 5 ways they are national pension scheme, pension plans with returns, mutual funds, annuity plans and unit linked plan all plans which are mentioned above are unique in many aspects, which are useful after the retirement period.