Retirement planning is a natural part of life, and it’s important to prepare for a healthy and comfortable lifestyle during these non-working years. This planning involves investing in options that provide a steady income after retirement. Monthly pensions, in addition to investment gains, can be quite advantageous.
Retirement Planning With EPF, NPS and PMVVY
There are many retirement benefit schemes available, and it’s important to plan carefully to ensure a steady income after retirement. By investing in options like PPF, NPS, PMVVY, and other annuity plans, you can secure a monthly pension of Rs 10,000.
How to Get Monthly Pension of ₹10,000 With EPF, NPS and PMVVY:
Employees’ Provident Fund or EPF
The EPF scheme is designed for private sector employees’ retirement benefits. During your employment, you contribute 12 percent of your basic salary and dearness allowance to your EPF account each month. Your employer matches this contribution, with 8.33 percent going to the Employee Pension Scheme (EPS) and the remaining 3.67 percent into the EPF account. These contributions earn monthly interest. When you retire, you can either withdraw the full EPF amount at once or choose to receive regular pension payments as needed.
National Pension Scheme or NPS
The National Pension System (NPS) is a voluntary retirement plan for both private and public sector workers. You can contribute regularly to it to save for your retirement. Right now, the interest rate is between 9% and 12%. When it matures, you can take out 60% of your NPS savings as a lump sum, and the remaining 40% can be turned into regular annuity payments.
Pradhan Mantri Vaya Vandana Yojana or PMVVY
PMVVY is a special pension plan from the Government of India for people aged 60 and above. Seniors can invest a lump sum amount and, in return, get guaranteed monthly payments for ten years.
Other Similar Schemes
Apart from government pension plans, many banks and NBFCs offer pension options that can provide you with a monthly pension of Rs 10,000. You can choose annuity insurance plans from LIC and other insurers, which offer both savings and insurance benefits. There are also mutual fund schemes designed for long-term investment that can help you earn a monthly pension of Rs 10,000.