The planning of retirement is an important part of financial planning, and one of the most recurrent questions remains how it will be possible to ensure such a pension amounting to Rs. 50,000.00 per month after retirement. The following article will talk about a number of pension schemes and plans that may help in this regard; these include but are not limited to the NPS, SBI Retire Smart, EB Pension, LIC Pension Scheme, and ICICI Pension Plan, to name a few. By understanding all these options and taking help from tools like the National Pension Scheme calculator, you can devise a strategy that works best for you.
1. National Pension Scheme-NPS
It is backed by the government pension scheme; its idea is to help individuals in their financial aspect after retirement. It is flexible in both contribution and fund management concepts, and it is devised to enable the individuals to generate a substantial retirement corpus.
Key Features of NPS:
- Flexible Contributions: You can contribute anywhere as low as Rs 1,000 annually with no upper bound.
- Market-Linked Growth: NPS invests in equity, government bonds, and corporate debt, hence market-linked returns.
- Tax Benefits: Deductions can be claimed up to a limit under Section 80C and an additional amount of Rs. 50,000 under Section 80CCD(1B).
- NPS Calculator: The National Pension Scheme calculator will help you estimate the pension corpus and monthly pension based on your contributions and tenure.
How to Use the NPS Calculator to Achieve Rs. 50,000 Pension Per Month:
- Details to be Entered: Enter your age, retirement age, and monthly contributions.
- Assumed Rate of Return: Returns offered by NPS are market performance linked. An average of 8-10% may be considered for a balanced portfolio.
- Estimation of Pension: The NPS calculator would give the corpus you will build up by the time of your retirement. For a monthly pension of Rs. 50,000 per month, your corpus should be approximately Rs. 1.5 to 2 crores.
Example:
If you are 30 years old and retire at 60, a contribution of Rs. 25,000 a month could fetch you a pension corpus of Rs. 2.5 crores by assuming 8% returns. Buying an annuity with this corpus can fetch you a monthly pension of Rs. 50,000.
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2. SBI Retire Smart
SBI Life Insurance’s SBI Retire Smart Plan is a pension plan that offers the best features of both guaranteed returns and market-linked returns. It aids in building a retirement corpus while offering life cover during the policy term.
Key Features of SBI Retire Smart:
- Guaranteed Additions: SBI Retire Smart offers you guaranteed additions of 10% of the annualized premium from the 15th policy year onwards.
- Bonus: Loyalty additions are given from the 10th policy year.
- Flexibility in Premium Payment Terms: Regular, Limited, and Single premium payment terms are available.
- Fund Management: The plan invests in a diversified portfolio of equity and debt funds to provide potentially higher growth.
How to Achieve Rs. 50,000 Pension:
- Pay Regularly: Assured regular contribution for 20-30 years will build up a substantial corpus translating into a good pension amount.
- Calculate the Corpus: Through NPS Calculator or SBI’s own pension calculators determine the projected returns and amount of pension.
3. EB Pension
Employers offer EB or Employee Benefits pension schemes to ensure employees receive a pension after retirement. These vary from organization to organization but mostly function on employer-employee contribution.
Some Key Features of EB Pension:
- Employer Contribution: Your salary will contribute a certain portion toward your pension corpus.
- Assured Pension: The accruals provide an assured pension amount at retirement.
- Tax Benefits: All subscriptions paid towards EB pensions are adequately tax-efficient.
How to Get Rs. 50,000 Assured Pension:
- Check how much your employer would be able to contribute.
- If needed, supplement your pension fund with your personal additions.
- Take the help of a National Pension Scheme calculator to see approximately how much more savings you may need to achieve Rs. 50,000 month on month.
4. LIC Pension Scheme
Pension Schemes: LIC offers a range of pension plans, including LIC Jeevan Shanti and LIC Jeevan Akshay VII, guaranteeing lifelong pensions.
Key Features of the LIC Pension Scheme
- Immediate and Deferred Annuities: You can start receiving your pension immediately or can defer it for a few years.
- Lifelong Income: These schemes assure a fixed pension for life.
- Joint Life Option: You may opt for such a pension plan that may provide an income to your spouse in the event of your death.
Example of LIC Pension Plan:
LIC Jeevan Shanti: You can buy this policy can defer the annuity for a selected period and start getting a monthly pension. The investment of a lump sum amount of around Rs. 1 crore could fetch a monthly pension of almost Rs. 50,000, depending upon the annuity options chosen.
5. ICICI Pension Plan
Retirement solutions offered by the ICICI Pension Plan comprise two plans: ICICI Pru Easy Retirement and ICICI Pru Immediate Annuity. These plans assure guaranteed pensions with flexible options to choose the payout mode.
Key Features of ICICI Pension Plan:
- Guaranteed Payout: Assured returns and annuities for lifetime income accrual.
- Fund Growth: Your money, in the accumulation phase, is invested in a judicious mix of equity and debt for probable growth.
- Flexible Payouts: One can choose from lump sum, regular monthly income, or deferred annuity.
Achieving Rs. 50,000 Monthly Pension:
Assuming the ICICI Pension Plan: With disciplined contribution and building up the pension corpus of approximately Rs. 1.5 crores, using the annuity options under the scheme, this could be converted into a monthly pension of Rs. 50,000.
6. SBI Pension Plan for 5 Years
SBI offers the 5-Year Pension Plan in which an individual can invest for five continuous years and then receive a pension amount. This may sound quite lucrative to those people who have reached an age near retirement and want some solution for planning a pension in the short term.
Key Features of SBI Pension Plan:
- Short-Term Commitment: Pay for a continuous five-year period and enjoy a pension thereafter.
- Fixed Pension: A guaranteed pension payout ensures regular income that is stable.
- Top-Up Options: You can top up your pension with additional investments to enhance your payout.
How to Achieve Rs. 50,000 Pension:
You will need to build up a big pension fund by making a few lump-sum contributions during the five-year period. Use calculators like the National Pension Scheme calculator or specific calculators for SBI to figure out how much to invest.
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7. LIC Pension Fund Scheme
The LIC Pension Fund Scheme forms part of the NPS, where LIC acts as a pension fund manager. It provides disciplined management of your pension contributions to help grow your corpus over time.
Key Features of LIC Pension Fund Scheme:
- Professional Management: LIC invests your money in a balanced portfolio of equities and debt.
- Guaranteed Pension: At retirement, your accumulated fund can be converted into a lifelong pension.
- Trustworthiness of LIC: Being amongst the most trusted names for insurance and management of the pension scheme, LIC will make sure that your pension fund is safe and managed in the best possible ways.
How to Maximize Returns:
Pay regular contributions and pay for a longer period to build the corpus. Looking at the projections provided by the National Pension Scheme calculator, top-up your pension fund accordingly.
Conclusion
Reaching a pension of Rs. 50,000 per month is not a far-off dream. It does call for careful planning and disciplined contributions. You may look into options such as the National Pension Scheme, SBI Retire Smart, LIC Pension Scheme, and ICICI Pension Plan for building up an adequate retirement corpus, which provides financial security during golden years.
Calculators such as the National Pension Scheme calculator are outstanding tools that will help you understand exactly how much you need to save per month to attain your retirement goal. Whether you choose market-linked schemes like NPS or guaranteed annuity schemes from LIC, the key to a comfortable retirement is to start early, be consistent, and make informed decisions.