Getting an income of ₹ 1 lakh every month even after retirement is no longer a dream. If you do smart financial planning at the right time, you can earn lakhs even in old age without any tension. For this, you just have to create a strong retirement fund and invest it in the right place. This is not an overnight task, but it is done slowly and with discipline. Let’s know how you can easily achieve this big goal.
How much funding is needed for a monthly income of ₹ 1 lakh
How much money you need to deposit to get an income of ₹ 1 lakh every month depends on how much return you expect from your investment. If you do not want to take any risk and want a safe investment, you will need a fund of about ₹ 2 crore. You can invest this amount in safe schemes like an Annuity, a Fixed Deposit, or a Debt Fund.
If you are ready to take some risk, then you can invest in schemes like the Senior Citizen Savings Scheme (SCSS), Balanced Hybrid Fund, or Equity Saving Fund. For these options, you will have to create a fund of about ₹ 1.5 crore. Those who can take more risk can get a return of up to 10% by investing in the Aggressive Hybrid Fund or the Large Cap Fund. To achieve this goal, you will need a fund of only ₹ 1.2 crore.
Systematic Withdrawal Plan
A Systematic Withdrawal Plan (SWP) is a great way to get a regular income after retirement. In this plan, you keep withdrawing a fixed amount every month, while the rest of the money remains invested and keeps growing.
For example, if you have a fund of ₹2.5 crore and you withdraw ₹1 lakh every month through SWP, your money will keep growing continuously. If your fund gives an average return of 8-10% annually, then you can comfortably manage your expenses throughout your life.
It is very important to take care of inflation.
The value of ₹1 lakh today will not be the same after 10-15 years. Therefore, definitely include inflation in your financial planning. Always invest so much that you can withdraw not only the interest but also some part of the principal amount, and your standard of living is not affected. This kind of planning will completely free you from the worry of money in old age.