EPF, NPS, PMVVY: Different ways to get Rs 10,000 monthly pension

Retirement is an inevitable phase of our life and it is essential to plan for maintaining a healthy lifestyle in the non-working years of life. Retirement planning involves investing in schemes or investment instruments that provide a stable source of retirement income. Apart from the investment profits, having a fixed payout as monthly pensions could be beneficial.

There are a wide range of retirement benefit schemes available in the market and it needs meticulous planning to ensure a stable income after superannuation. With investment in various schemes like PPF, NPS, PMVVY and other annuity plans you can ensure a Rs 10,000 monthly pension.

How to get Rs 10,000 monthly pension with investments

Employees' Provident Fund (EPF)

The EPF scheme has been designed for the retirement benefit of salaried employees in the private sector.  During the tenure of service, the employee makes a monthly contribution of 12 per cent of the basic salary and dearness allowance towards the EPF account. Additionally, the employer matches this contribution out of which 8.33 per cent is directed towards the Employee Pension Scheme (EPS) and the remaining 3.67 per cent goes to the EPF account. Furthermore, interest is paid on these contributions on a monthly basis. At the time of retirement, you can withdraw the entire EPF corpus at one go or you can sign-up for monthly or periodic pensions as required.

National Pension System (NPS)

The National Pension System is a voluntary pension scheme for both private and public sector employees. One can choose to make regular contributions to the NPS to build a significant retirement corpus. The interest rate varies between 9 and 12 per cent currently. On maturity, 60 per cent of the NPS corpus can be withdrawn lump sum and 40 per cent can be converted to annuity payouts.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is another pension scheme backed by the Government of India. This scheme is tailor-made for senior citizens aged 60 and above. Under this scheme, senior citizens can opt to invest a lump sum amount at one go and receive assured monthly payouts for 10 years.

Other Pension Plans

Apart from government-backed pension plans, there are several pension plans offered by many banks and NBFCs that could help you earn a monthly pension of Rs 10,000. These plans offer several advantages, including flexibility of investments, death benefits and assured returns. You can choose annuity insurance plans offered by LIC and other insurers which come with the dual benefit of savings option and insurance protection. Many mutual fund schemes also help to build wealth with long term investment. You can choose Mutual Fund SIP plans to earn a monthly pension of Rs 10,000. The advantage of SIP plans is that you can save a small amount every month to build a retirement corpus.