SIPs or Systematic Investment Plan is one of the ways to secure your monthly pension after retirement.
Retirement is that stage of life when a person wants to relax without worrying about money. People seek to ensure their life after retirement is as comfortable as possible, for themselves and their family. Let us take a look at some tips on how to get a Rs 1 lakh pension per month after retirement.
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First, calculate the money you want to get during retirement, which you will get as pension. Then you have to know how much investment is needed to arrange that amount; after that, decide where to invest the money to get the returns you aim for.
National Pension Scheme (NPS) is a scheme launched by the union government to help the citizens in making best decisions for their future during their work life. If you have subscribed to NPS, then you can choose investment vehicles. Meaning, if you allocate 60 percent in equity assets and 40 percent in debt, then this balanced mix will deliver approximately 10 percent returns. A monthly contribution of 15,000 and a 30-year tenure could provide you with 1 lakh pension.
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Another way to achieve a 1 lakh monthly pension goal is through SIPs or Systematic Investment Plan. Starting SIP at 30 will give you a 30-year investment horizon to ensure a retirement corpus. By 60, a Rs 5666 SIP will provide you with a corpus of Rs 2 crore and a 12 percent of annual yield.
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Pankaj Mathpal, CEO and MD at Optima Money Managers, said in an interview with a portal: “An investor can choose hybrid or conservative hybrid SWP (Systematic Withdrawal Plan) funds that can easily beat the inflation by yielding around 7-8 percent annual return. However, my suggestion for the investor is to keep inflation post-retirement in mind and assume life after retirement to the tune of 30 years.” He further said that to get a 1 lakh pension for the next 30 years, an investor must have Rs 2.76 crore fund for SWP, keeping 6 percent annual inflation in mind.
