5 Top Investment Options in India to get 50K Pension/Month
In this post, discover how to plan for a comfortable life post-retirement with a 50K monthly pension to avoid financial difficulties in old age.
How to Invest Money to Get a 50K Pension per month?
An INR 50,000 pension per month would depend on how much you save, for how long you save and when you want to receive the pension. So, if you have started your retirement portfolio in your 30s and you want the amount to start coming in during your 60s, you would have more time to invest and reap the benefits accordingly. On the other hand, if you do not have too many years to save before you could retire, you need to invest more.
5 Best Investment options to get 50K Pension Per Month
Below are some investment options that could help you to earn INR 50,000 per month as pension:
1. National Pension Scheme (NPS):
2. Unit-linked Insurance Plans (ULIPs):
3. Annuity Plans:
4. Guaranteed Return Pension Plans:
5. Mutual Funds:
1. National Pension Scheme (NPS)
This is a government of India initiated pension plan that helps investors to accumulate monetary backup after retirement. These savings plan let investors save methodically so as to create a source of income for the future. Here individual investors are joined and are reinvested in the market to receive added returns. When the investor nears the age of retirement, he is given the option to withdraw a portion of the corpus generated and he/she can use the remaining amount to buy an annuity plan from an insurance company to get monthly annuity after retirement.
2. Unit-linked Insurance Plans (ULIPs)
The ULIPs are again market-linked plans of investment cum insurance which allow attractive returns on the basis of market performance. There are some exclusive retirement ULIPs that serve as a source of income after retirement of the investor. Under ULIPs, a portion of the premium paid is used for life cover, while the other portion is invested in equity and mutual funds.
3. Annuity Plans
When an investor invests in an annuity plan, he/she gets periodic payouts based on the investment amount. You can avail annuities on a monthly payout basis after retirement to fulfil your needs. Usually, annuities are paid out all through the lifetime of the investor. Investors, on the other hand, can buy annuity plans by paying a lump sum amount to receive monthly annuities later.
4. Guaranteed Return Pension Plans
These plans are available with insurance protection options and they offer assured payout on a monthly basis after you retire. Further, assured return plans also secure your family members financially if any unfortunate event like your demise takes place. Under these plans, the investor gets lump sum payment at maturity in addition to a monthly pension option for a long duration after retirement. In this case, to receive INR 50,000 per month, you have to invest in a 100% guaranteed return plan for 10 years.
5. Mutual Funds
These are again investment options that are market-linked, which offer good returns by investing in equity and debts. Being high on risk, the investor investing in these plans has to take risk. If you are looking to balance the risk, you can opt for systematic investment plans (SIPs). After you secure enough corpus through a mutual fund, you can take a portion of the amount for investing in annuity to ensure lifetime income after retirement.