Want ₹1 Lakh Per Month After Retirement? Here’s the Best Plan
Retirement is something we all look forward to a time to relax, travel, and enjoy life without worrying about work. But to live comfortably, you need a solid financial plan.
If your goal is to receive ₹1 lakh per month after retirement, your planning must start today. In this guide, we’ll show you exactly how to achieve that target, using practical strategies, real examples, and a detailed case study.
🧾 Why You Need ₹1 Lakh Per Month
With inflation rising every year, what feels enough today may not be enough tomorrow. Let’s assume:
- You need ₹50,000/month today for basic living.
- In 20–30 years, that same lifestyle could easily cost ₹1 lakh/month or more.
Expenses to consider:
- Household and groceries
- Medical bills
- Travel and hobbies
- Utilities and maintenance
📈 How Much Corpus Do You Need?
A popular rule of thumb for retirement planning is the 4% withdrawal rule.
If you want ₹1 lakh/month (₹12 lakh/year), divide by 4%:
Corpus needed = ₹12,00,000 ÷ 0.04 = ₹3 crore
This means you’ll need about ₹3 crore invested safely to withdraw ₹1 lakh per month without exhausting your savings.
💰 How to Build ₹3 Crore Corpus
1️⃣ Start Early and Invest Regularly
Example:
- Age: 30
- Retirement Age: 60
- Investment period: 30 years
If you invest ₹25,000/month in a mutual fund SIP with ~12% annual return, you can accumulate ₹3.2 crore.
2️⃣ Increase Your SIP Amount Over Time
As your income grows, increase your SIP by at least 5–10% per year. This helps beat inflation and grow your corpus faster.
3️⃣ Use PPF and EPF Wisely
Combine PPF (Public Provident Fund) and EPF (Employees’ Provident Fund) for tax-free, long-term growth.
Example:
- PPF: ₹1.5 lakh/year for 30 years @ 7.1% = ~₹1.5 crore
4️⃣ Invest in NPS
The National Pension System (NPS) offers market-linked returns and tax benefits.
- Mix equity and debt for balanced growth.
- Target an additional ₹50 lakh to ₹1 crore from NPS.
🏠 Example Retirement Plan
Mr. Ravi, aged 30, targets ₹1 lakh/month after 60.
Plan:
- SIP: ₹25,000/month → ₹3.2 crore
- PPF: ₹1.5 lakh/year → ₹1.5 crore
- NPS: ₹5,000/month → ₹1 crore
Total Corpus: ~₹5.7 crore, more than enough for ₹1 lakh/month income.
🔐 Safe Withdrawal Strategies
- Systematic Withdrawal Plans (SWP): Flexible, tax-efficient
- Senior Citizen Schemes (SCSS, PMVVY): Guaranteed income
- Immediate Annuities: Lifetime guaranteed payouts
🧮 How Much Should You Invest?
| Age | Monthly SIP Needed for ₹3 Cr (12%, 30 years) |
|---|---|
| 25 | ₹15,000 |
| 30 | ₹25,000 |
| 35 | ₹40,000 |
✅ FAQs
Q: Can I rely only on EPF or PPF?
No. While they are good, they may not be enough alone to meet a ₹1 lakh/month target.
Q: Is ₹1 lakh/month sufficient?
Q: Can I start at 40?
Q: Is NPS safe?
Q: Can I increase my SIP every year?
💬 Final Thoughts
Achieving ₹1 lakh per month post-retirement is very much possible — with early planning, consistent SIPs, and smart asset choices.
Start today. Even ₹5,000 per month makes a big difference if you begin early. Your future self will thank you for this disciplined habit.