How to get Rs. 1,30,000 (Rs. 1.30 Lakh ) monthly pension

 

How to get Rs. 1,30,000 (Rs. 1.30 Lakh )  monthly pension

Assume you or your spouse are 35 years old and wish to get a monthly pension of Rs  1.30 Lakh or  Rs.50,000 after reaching the age of 60. In this case, you will have to deposit Rs 15,000 in this scheme on a monthly basis. You must put this money aside until you reach the age of 60. In this manner, you will have to deposit Rs 45 lakh in this scheme over a period of 25 years. Your maturity amount will be roughly Rs 2 crore when you reach the age of 60.

With Rs. 2 crore in hand  @ age of 60,  you have 2 options :

1.     Invest full amount in purchase of Annuity , in that case you can get Rs. 1 Lakh per month life time as pension assuming 6% annuity purchase rate.

2.     Take back  60 percent of this, or around Rs 1.20 crore, in a single sum called commuted pension which is Tax Free, (and invest in Mutual Fund with SWP of Rs. 80000 pm life time and your corpus keeps growing too)  with the remaining Rs 80 Lakh available as  annuity purchase.

If the annuity rate is 7% at the time, you will receive a monthly pension of around Rs 50,000 for life time .

In the event of the scheme holder's death, the remaining amount will be paid out in a lump payment to his or her nominee.

Please Note that pension is treated as Salary for Tax purpose so Income from Pension is Taxable at your slab rate in case of Annuity. However Income from SWP is subject to capital gain which is exempt upto Rs. 1 lakh per year)

 

@Ajit Kumar Singh