Achieving a ₹50,000 Monthly Pension: Step-by-Step Guide

Also, as per a survey by PGIM India Retirement Readiness in 2020, 51% of participants did not have any financial planning in place for retirement. If you’re aiming to get a pension of Rs. 50,000 per month, you need to start taking small, effective steps to help reach there, including careful planning, disciplined investing and selecting the right investment plan. That is why, to achieve the ultimate retirement goal in India, check the below comprehensive guide to ensure a steady income source even after your retirement—availing the best pension plan in India.

Why Should you Aim for a 50,000 Monthly Pension?

The reasons are very simple:

• To maintain your daily lifestyle post-retirement
• To ensure financial independence and peace of mind
• To cover sudden expenses, including healthcare and daily expenses

Steps to Achieve a Rs 50,000 Pension a Month

Keep these steps in mind to achieve the pension amount of Rs. 50,000–

1. Begin at an Early Age

Don’t wait. Start investing early to build a substantial retirement pension corpus. By compounding early, your investments will grow exponentially over time, to ultimately accumulate a Rs 50,000 monthly pension.

2. Increase Your Contributions

The higher the contribution, the more will be your corpus and the monthly pension you can acquire. Invest as much as possible within your financial limits, be it in retirement accounts such as pension plans, NPS or other government schemes, to ensure steady growth of your retirement fund.

3. Make Smart Investment Choices

Select investment options with care and per your risk tolerance, while opting for pension plans and schemes that offer good returns with manageable risks. That is why selecting the right investment plan mix becomes essential.

4. Spread Out Your Investments

Do not minimise your portfolio to one asset class. Instead, diversify it across various asset classes such as equities, debt, fixed deposits, and government schemes. This allows you to reduce the possibilities of risk, while ensuring stable returns over time.

5. Use Annuity Plans for a Steady Income

With the help of an Annuity plan, you can be assured of converting your lump-sum retirement corpus to a monthly pension income. This enables you to ensure a reliable means of a steady pension, especially during retirement, where regular income is not assured.

6. Estimate Your Retirement Expenses

Realistically calculate your post-retirement expenses to ensure the pension covers all your needs. Make sure to consider inflation and medical costs to help determine the exact pension amount you require for your lifestyle.

7. Get Expert Guidance

Based on your risk appetite, financial goals and retirement timeline, consult financial advisors who will help you select a customised retirement plan, tailored to suit your needs. With the help of professional guidance, you are assured of an optimal investment strategy in place.

8. Keep Yourself Updated

Keep yourself updated regarding pension schemes, interest rates and tax laws. The more you stay informed regarding these, you will be able to make timely adjustments to your retirement planning, thereby ensuring optimal pension income.

Best Investment Options to Get Rs. 50,000 Pension Per Month

Check out the key pension investment options available in India to achieve a pension scheme of Rs. 50,000 per Month–

Link between Rs. 50,000 Monthly Pension and NPS Investment

A Rs 50,000 pension can only be achieved by starting young, by slowly accumulating your contributions to allow them to grow to a substantial amount. This helps build a strong retirement corpus. National Pension Scheme (NPS) is one such government-backed scheme designed for retirement planning, offering market-linked returns with tax benefits.

How does NPS work?

• Eligibility

Open to Indian citizens between the ages of 18-70 years.

• Investment Choice

Allocate funds between equity and debt as per your risk tolerance.

• Tax Benefits

Deductions under Section 80CCD(1) and 80CCD(1B)

• Withdrawal

At retirement, up to 60% of the corpus can be withdrawn tax-free, while at least 40% must be used to buy an annuity for a regular pension.

• Rates and Returns

NPS returns are market-linked and typically range from 8% to 10% p.a., depending on asset allocation and market performance

How to calculate the Required Investment from NPS?

A simple way to estimate your returns is using a tool called the NPS calculator, which helps in determining the amount collected in your National Pension System, at the time of retirement.

Why Invest In A Pension Plan?

Here are the benefits of investing in a pension plan:

1. Guaranteed Income Post Retirement

With a steady income every month after your retirement, your pension plan assures you of a lifestyle without financial worries.

2. Chances to Grow Your Returns

Certain investment plans provide potential growth opportunities, as they are linked to the market, allowing you to grow your retirement fund over time.

3. Easily Save on Taxes

Under Section 80D, you can receive partial or full tax exemption on pension income, allowing you to save more.

4. Choose How You want to invest

Based on the level of risk you are comfortable with and your financial goals, you can select an investment plan that matches your needs from multiple funds and asset classes.

5. Added Life Insurance

In general, many pension plans include life insurance benefits, providing added financial security to your family in case something happens to you.

6. Builds a Saving Habit

Ensures a habit of regular, consistent savings for smooth retirement planning, so you can save more and worry less.

Summing Up

A ₹50,000 pension scheme is achievable—through careful planning, disciplined investing and starting at an early age. To select the best pension plan in India, it is necessary to diversify your portfolio with a mix of ULIPs, annuity plans, government schemes like NPS, and mutual funds that can help build a robust retirement corpus.

Frequently Asked Questions