Retirement Pension Calculator: You must get a pension of Rs. 1 lakh per month upon retirement; make the following investments

 Retirement Pension Calculator: You must get a pension of Rs. 1 lakh per month upon retirement; make the following investments

Retirement planning: Investments now have equal importance to income in today's world. We will advise you on the finest ways to invest so that your future will be pleasant even after you retire and seek a pension of Rs 1 lakh per month.

Investment: Retirement planning is the largest obligation after marriage and childrearing. Everybody has this as a major life objective in order to live a happy old age. As a result, it's critical to begin pension investments immediately. If, at 40, you want to get a monthly pension of Rs 1 lakh when you reach 60, you would need to make regular investments to achieve this goal.

The first three guidelines for retirement planning should be adhered to. Compute the amount needed in this for when you retire, which is the monthly pension you will get as long as you live. Next, calculate how much you will need to invest and save in order to get this necessary sum of money. Choose the location after that to ensure the desired results.

An financial expert said in a Money now article that, assuming a 6% annual inflation rate, an income of Rs 50,000 now would equal Rs 1.6 lakh after 20 years. In this case, you would need to save Rs 3.98 crore via retirement planning over the course of the following 20 years in order to get a pension of Rs 1 lakh each month.

In the next 20 years, you would need to invest Rs 38,000 every month in order to make Rs 3.98 crore. You should invest 40% in debt funds and 60% in equities to get this amount. You will need to raise the SIP amount by 5% year in order to progressively grow your equity investment. Each month, you must invest Rs. 15,000 in debt and Rs. 23,000 in equity. This investment is expected to increase by 5% annually.

In this approach, you may collect around Rs 88 lakh from debt investment and Rs 3.15 crore from equity investment after 20 years, assuming 8% return from debt fund and 12% return from stock. In this method, you may amass almost Rs 3.98 crore by the time you are 60 years old, and you will be eligible for a pension that will exceed Rs 1 lakh per month for the following 20 years. This is just a possible return, however, since equity investments are prone to market risk. For advice on retirement planning and investing, please speak with a financial professional.