Pension plan with LIC, PPF: Got a new job? What if someone tells you that by investing just Rs 5000/month for 15 years, you can be assured of Rs 35,000/month pension after retirement? Believe it or not, but it's possible and legit. The only condition is that you should start early - best at the age of 25. When you start investing the amount at the age of 25, you will be assured of the said pension amount at the age of 60. 

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As soon as you start working, first open a Public Provident Fund (PPF) account and start investing Rs 5000/month for 15 years. At the current rate of interest of 8%, which is compounded annually, your monthly investment can grow up to Rs 1,940,141, or around Rs 20 lakh. Investing Rs 20 lakh from the PPF account in LIC Jeevan Shanti, you would become eligible for around Rs 35,000/month pension after 20 years, or when you reach 60. 

There are several other pension plans. The one explained above could be said to be the simplest plan you can start working on today for an assured amount per month after retirement. If you invest just Rs 10,000 per month for 15 years, then as per this plan you would become eligible for a monthly pension plan. 

The PPF account comes with several benefits apart from the interest rate, which is at par or above the interest offered by several Fixed Deposit plans. Not just you get an assured return from the PPF, you also save income tax on the investment, and the interest earned on it.  Know more about PPF interest rate, withdrawal rules, calculator HERE 

LIC Jeevan Shanti plan is a single premium plan wherein the policyholder has an option to choose an immediate or deferred annuity. That means, you can start getting a monthly/yearly pension soon after investing a lump sum in the Jeevan Shanti plan. Alternatively, you can invest a lump sum today and start getting an assured pension after 20 years. Know more about LIC Jeevan Shanti plan HERE. 

Other option for you include the National Pension System (NPS). Unlike the one plan suggested above, you will have to invest some amount in the NPS till you retire. Read more about NPS HERE. 

Note: The calculation above has been done as per the current interest rate on PPF offered by the government. The final amount you would get may vary if there is a change in the interest rate. Online calculators have been used for LIC Jeevan Shanti plan calculation. Read the LIC policy document completely before investing in the scheme.