LIC Jeevan Shanti and National Pension System (NPS) are two means, among many,  through which you can plan a regular cash flow post retirement. Both have distinct features of their own. But you would be curious to know as to what it will take to get a pension of at least Rs 50,000/month post retirement. Here's an explanation.

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First, take a look at the LIC plan

The LIC Jeevan Shanti is a single premium plan wherein you can pick an option to choose an Immediate or Deferred annuity.

Annuity is referred to the fixed sum of money paid to someone each year, generally for the rest of their life. First take the case of immediate annuity: 

For a pension of Rs 50,000/month (or Rs 6 lakh/annum), you will have to invest around Rs 70 lakh at the age of 60 in the LIC plan. At the age of 50, you will need to invest at least Rs 80 lakh for Rs 50,000/month pension. At the age of forty, you will have to invest Rs 86 lakh for the same result. 

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The minimum age at which the Jeevan Shanti policy may be subscribed to is 30 years.

In case of deferred annuity (pension will start after 20 years), you will need to invest around Rs 29 lakh at the age of 30 or 40 and around Rs 33 lakh at the age of 50 for a Rs 50,000 per month pension. 

No doubt, Jeevan Shanti comes with best of the insurance policy benefits, but getting such a large lump sump for a regular monthly pension could be a daunting task. This may become easy if you make a regular savings towards pension from an early age in schemes like National Pension System (NPS).

Assuming at least 8% return, online NPS calculator provided by HDFC Pension suggests various investment options at different stages of life. 

ALSO READ | National Pension System benefits: With just Rs 138/day, you can get Rs 50,000/month; Rs 19 lakh cash!

If you start investing in NPS at the age of 25, you will have to put in just around Rs 4150 per month for a pension of a little over Rs 50,000/month. At the age of 30, you will have to invest around Rs 6500/month and Rs 10,000/month for the desired result at 35. At the age of 40, this could go up to around Rs 16,000/month. 

(Note: Online calculator has been used for the article to explain different scenarios. Read all documents carefully before making an investment.)