How to Get ₹1 Lakh Pension Per Month?

Securing your financial future after retirement is crucial to meet your basic needs. However, the right planning is necessary to achieve the required monthly pension. By choosing the correct investment option at the optimal time, you can even receive a 1 Lakh pension per month.

Keep reading to learn more about the ways of securing a ₹1 Lakh monthly pension, the best investment options to generate the amount, the benefits, and more!

Here are some of the ways that you must follow to achieve a ₹1 Lakh pension per month:

Most people delay their retirement planning for two common reasons. Firstly, they may not know about investment options. Secondly, they cannot determine the appropriate monthly contribution amount that will provide a 1 Lakh pension per month.

To ensure that you have enough clarity about retirement planning, the table below explains monthly contributions to retirement funds. This information is for individuals starting at 25, 30, or 40 years old.

The equity exposure in each of the three scenarios shown in the chart below is 75%, and the annualised return on contributions is 12.48%. To receive a monthly pension, the annuity return is 7% annually.

To get pension of 1 Lakh per month, you can choose any of the following investment options:

Here are the steps to follow to generate 1 Lakh pension per month:

The following are the benefits of choosing a 1 Lakh pension plan:

• Returns: NPS offers better returns than other retirement benefit plans. Till now, it has offered approximately 7% to 12% annual returns to the investors.
• Tax Benefits: Employees who contribute to the NPS can get up to ₹2 Lakhs in tax deductions annually under Sections 80CCD (1), 80CCD (2), and 80CCD (1B). The annuity income will be taxable based on your income slab.
• Flexibility: Individuals investing in NPS get the flexibility of starting their investment at any time and changing the investment amount as per their preferences. Moreover, they can select investment options and operate the NPS account from anywhere.

Here are the ways to select the best pension plan for a ₹1 Lakh monthly income:

• Evaluate Investment Limits: Compare your corpus to the minimum and maximum investment caps (₹1.2-1.5 crore required). Plans such as SCSS, RBI bonds or FDs should be aligned in such a way that the total maturity amount is enough to provide a ₹1 lakh pension per month after retirement.
• Assess Expected Returns: To maintain ₹1 lakh in the face of inflation, give priority to 8–10% post-tax yields. Choose SWPs in hybrids (9–12%) for greater potential while balancing risk; assured returns (e.g., SCSS at 8.2%) offer stability but slower growth.
• Examine Your Liquidity Options: Plans with flexible withdrawal options are preferable to those with strict lock-ins. Semi-annual access is made possible by RBI Bonds. On the other hand, debt funds and SWPs offer continuous payouts without depleting the corpus.
• Seek Extra Benefits: Choose options with tax benefits, such as DICGC insurance on FDs or Section 80TTB (₹50,000 deduction on SCSS/FD interest). For seniors aiming for steady pensions of ₹1 lakh, these improve net income security.
• Diversify Your Assets: Depending on your risk tolerance, create a mix of debt (FDs, POMIS, G-Secs for safety) and equity/hybrids. Aggressive: 50% equity to produce ₹1 lakh steadily over decades; conservative: 70% debt.

Planning for your retirement is necessary from an early age if you desire to get a pension of 1 lakh per month. This will allow you to build a considerable corpus over a period to secure your life after retirement.

However, for this, you need to select the right investment option that will yield higher returns to offer you the desired pension amount.