How much fund will be needed and how much will be invested to get a pension of one lakh rupees? Learn everything here
Newz Fast, New Delhi: After retirement, a monthly pension of Rs 1 lakh would be required to live without worrying about money.
After retirement everyone wants to live a comfortable life and not have to worry about money. There can be a difference in the definition of living a comfortable life for everyone and the amount required for it.
So we assume that after retirement to live without worrying about money, one would need a monthly pension of Rs 1 lakh. In such a situation, the question arises that what are the investment solutions that can get you this amount and how much you need to invest.
In an article published on Mint, Pankaj Mathpal, MD and CEO, Optima Money Managers, says that to get a pension of Rs 1 lakh, one should invest in a systematic withdrawal plan.
He says investors can opt for conservative or hybrid SWPs which can beat inflation by giving 7-8 per cent returns every year.
He says that keeping inflation in mind, an investor would need a fund of Rs 2.76 crore in SWP for a pension of Rs 1 lakh.
Tax and investment expert Jitendra Solanki says that if you are starting to raise money for pension from 30 years, then it is usually collected for 30 years ahead of retirement.
That is, you are preparing a pension fund for 60-90 years and you have only 30 years for this. If you do not have a lump sum deposit, then opt for mutual fund SIP, which will help you beat inflation in the long run.
How much investment needed
A person investing in mutual funds can expect a return of 15 per cent over a long period. If a person wants to collect Rs 2.76 crore, then he should increase the SIP by 10 percent every year.
If suppose the mutual fund is giving an annual return of 15 per cent and you are increasing the SIP by 10 per cent every year, then you have to start SIP with Rs 2,200 at the age of 30.
The investor will invest Rs 43,42,642 in 30 years and after 30 years his total investment will increase to Rs 2,35,94,709.