How to Get 10000 Monthly Pension – Check Ways & Investment Plans in 2024

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Updated on Feb 16, 2024

The time after retirement is such that you cannot expect a regular salary coming on a monthly basis. However, when it comes to your expenses, they remain almost the same. Hence, it is crucial to plan for your retirement so that you can have financial stability to lead a content life without any worries.

If you are willing to earn INR 10,000 per month to lead a comfortable life after retirement, invest in an investment opportunity that allows you an equivalent monthly return. Read on to know about some such investment options in this post, which will allow you to earn INR 10,000 or more per month depending on your investment.

Why Do You Need a Pension?

Pension is a key requirement at the time when people retire. Retirement is the phase of life when you may not earn an active income. After working all through your life, this is the period to enjoy a relaxed lifestyle. And to ensure that you enjoy a relaxed lifestyle you need a pension, which again requires judicious planning so that you can manage finances regularly even when your monthly salary ceases to exist.

Hence, investing in a reliable pension policy to earn a fixed monthly income is important to handle your finances easily after retirement. The best part of these pension policies is that they also provide the benefit of life insurance coverage to deal with any untoward situation in life.

What are the Advantages of a Pension Plan?

A pension plan enables the investor to enjoy the below-mentioned benefits:

  • The first and foremost benefit is related to your monetary security. A pension plan with a stable monthly income allows enough funds for the investor to meet the financial needs of his/her family
  • Tax benefit is another important aspect of pension plans. You may avail of a tax benefit u/s 80C of the Income Tax Act. For maximum benefits, you may consult a tax advisor so that you can minimize your tax liabilities
  • Pension plans also provide a great deal of flexibility in terms of choosing the premium and the payout. As per your need, you may choose an annuity payout option or a fixed payment. Policies also allow a combination of lump-sum amounts with monthly pensions for better monetary freedom.

How to Earn a Pension of INR 10,000 Per Month?

Plan judiciously to earn a pension of INR 10,000 per month by following the below tips:

  • Start early to accumulate more – Be it a pension plan or any other investment policy, the key is to start early to save/accumulate more. Since the money invested is compounded in a pension plan, it allows the corpus to grow better over time to offer you enough for retirement.
  • Regular Contribution is the key – Contribute regularly towards the plan to ensure that the fund grows gradually to meet your future needs. You may opt for a pension plan with a flexible premium payment option.
  • Estimate future needs – Make an estimation of the monetary requirements you have so that you can save accordingly to meet your needs. Don’t forget to consider the rising prices along with your health conditions and the kind of life you want to lead after retirement.
  • Do some research and compare plans – Research is the key to finding the most suitable pension plan to fulfill your needs. Once you do detailed research, compare plans in terms of benefits, premium prices, etc., to make an informed decision.
  • Read the policy terms thoroughly – Make sure to go through the policy documents carefully so that you understand them well.  You must be careful about the surrender charges or withdrawal rules (if any).
  • Review policy regularly – You must review your pension plan frequently to see its performance. You may have to make some adjustments to your plan as per your changing financial milestones.

7 Investment Options to Get 10k Monthly Pension

1. Mutual Funds 

Among the various retirement saving schemes and policies, the mutual funds are among the best pension schemes in terms of generating the required revenue. With a mutual fund, you can accumulate a retirement corpus. Since these funds are managed by professionals under investment schemes where they pool money from multiple investors, mutual funds are regarded as risky options. However, depending on the scheme you choose to invest your funds as well as the market conditions, mutual funds can fetch you good returns. Equities, debt, hybrid funds, money market instruments etc. are some of the instruments of investment where your funds are invested under this scheme to earn better returns.

By investing in mutual funds via SIP or systematic investment plan, you can create wealth through compounding of interest. This way, you can ensure to earn INR 10,000 pension per month. The SIP method of investment under mutual funds is a way of generating high returns on your investment in the long run. Under SIP, a fixed amount of money is invested regularly to earn high returns by compounding.

2. National Pension System (NPS)

NPS is again a government plan which allows people to invest in different financial products like debts, equities, government securities etc. Investors of NPS can avail tax benefits and can also choose to invest under a pension fund manager of their choice.

NPS allow investors to accumulate a significant amount of money if you contribute to it regularly. This way, you can earn a monthly income of INR 10,000 per month after retirement. A part of the NPS contribution invested goes to equity, while the remaining amount goes to debt instruments. However, the asset allocation is done as per the age and risk-taking profile of the investor. NPS is another good way to earn higher returns and a steady monthly income after retirement.

3. Pension Plans

If you want to invest in retirement plans, pick a pension scheme such as an annuity or guaranteed income plan. These plans are designed to accumulate corpus to allow regular income to the investor after retirement. An annuity is a pension insurance product which allows fixed income for either a particular tenure of life or for your entire life depending on the plan. NPS is a good option for those who want to receive a regular income after retirement.

4. Senior Citizen Savings Scheme (SCSS) 

The Senior Citizen Savings Scheme is yet another government sponsored plan for the elderly above the age of 60 years. The SCSS allows the senior citizens an 8.20% fixed annual rate of interest with a tenure that ranges for five years. The union budget of 2024 has made it permissible for people to invest up to INR 30 lakh under this scheme. Hence, SCSS serves as a wonderful opportunity for the elderly to secure a regular income after their retirement.

5. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

When you talk about the government-backed pension plans especially meant for the senior citizens, you possibly cannot skip the Pradhan Mantri Vaya Vandana Yojana or PMVVY. This scheme is available for 10 years with a 7.4 % guaranteed rate of interest. So, if you want to earn INR 10,000 per month, you can invest in PMVVY, which is the best policy for risk-averse investors. Senior citizens can buy this plan from LIC to serve as a LIC monthly income plan.

6. Employee Provident Fund (EPF) 

Every salaried employee can benefit from the Employee Provident Fund (EPF), which is one of the best retirement plans in India. This is a government backed plan that allows a steady income source to the employee after retirement. Contributing regularly in your EPF helps an individual to build a substantial corpus to receive INR 10,000 or more as monthly pension after retirement. This way, employees can secure their lives with a steady source of earning as a pension. Further, the employee can also earn tax benefits along with guaranteed returns under this plan.

Also Read: EPF vs PPF vs VPF

7. Post Office Monthly Income Scheme (POMIS)

POMIS or Post Office Monthly Income Scheme is an investment policy offered by the Indian government which allows fixed income on a monthly basis to investors. The tenure of the scheme is of five years and it offers 7.4 % interest rate. If you invest in this scheme, you can ensure a regular monthly income of over INR 10,000 as per the fund invested. This is one of the best schemes for investors who are risk-averse and who want to secure them financially with a regular income after retirement. However, it is important to note that the income generated under this policy is taxable.

Also Read: Post Office Monthly Income Scheme

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To conclude 

It is necessary to earn a pension amount of INR 10,000 per month to lead a good and worry-free retired life. You can choose from a range of investment options including government-backed policies which can help you in accumulating a corpus and offer you a steady income source during your retired life. But it is important to assess different risks and compare them with your goals of investment before buying a plan. Here, you can use a monthly pension calculator to find out the amount you would require to live comfortably after retirement and invest accordingly.

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FAQs: How to Get 10k Monthly Pension in 2024

Can I get INR 10,000 as a monthly pension without any investments?

No, you have to make certain investments to get a monthly pension of INR 10,000. Without making proper investments, it is impossible to receive that amount on a monthly basis.

What is the minimum amount that I can invest in NPS or National Pension System?

The minimum amount required to invest in NPS is INR 500. However, you must make a minimum contribution of INR 1,000 annually to keep the account active.

Is it possible to withdraw money from the SCSS or Senior Citizens Savings Scheme before maturity?

Withdrawing money from the SCSS account before maturity is possible. However, there is a penalty applied if you withdraw the money earlier. For instance, a penalty of 1.5% of the deposit amount is applied if you withdraw the money before one year.

What is the maximum amount I can invest under the Pradhan Mantri Vaya Vandana Yojana?

The maximum investment limit for the Pradhan Mantri pension scheme is INR 15 lakhs. If you invest that amount you can easily receive a monthly pension scheme of INR 10,000 or more.

Is it possible to contribute more than the obligatory amount under EPF or the Employee Provident Fund?

Yes, it is possible to contribute more than what is mandatory under the Employee Provident Fund. However, your employer is not obliged to pay the same or the added amount.

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Jul 06, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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