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Pension calculator: SIP you need to get ₹1 lakh monthly income post-retirement

Mutual fund calculator: Assuming SWP return at 10 per cent per annum and inflation at around 7 per cent per annum, one would be able to get ₹1 lakh monthly income for 25 years post-retirement, say tax and investment experts.

1 min read . Updated: 17 Oct 2021, 08:01 AM IST Asit Manohar

Pension calculator: To achieve this ambitious target of ₹1 lakh monthly income post-retirement, one can look at creating a corpus of around ₹13 crore that can be invested in SWP, say experts

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Pension calculator: Sakshi Tyagi is a 35 year old IT professional. She is drawing around ₹75,000 monthly take home salary and paying around ₹25,000 monthly home loan as well. So, she has ₹50,000 in hand salary to spend on her monthly expenses and savings for her future. Sakshi is able to save around ₹20,000 per month from this ₹50,000 and she is planning to use this ₹20,000 for her retirement corpus that can create around ₹1 lakh monthly income when she turns 60.

On investment tool that can help Sakshi achieve her post-retirement goal; Vinit Khandare, CEO & Founder at MyFundBazaar India Private Limited said, "One needs to keep inflation post-retirement in mind as well. To achieve this ambitious target of ₹1 lakh monthly income post-retirement, one can look at creating a corpus of around ₹13 crore that can be invested in SWP (Systematic Withdrawal Plan) for next 25 years. "

Vinit Khandare of MyFundBazaar India advised investors like Sakshi to go for equity mutual funds SIP (Systematic Investment Plan) as it yields around 12 to 14 per cent in long-term. He said that equity mutual funds investment easily beats inflation in long-term investment. He also advised 15 per cent annual step-up in SIP as it helps an investor to bring down its monthly SIP to the lowest possible levels.

Mutual fund calculator

Assuming ₹13 crore investment goal in mind, around 13 per cent mutual fund return and 15 per cent annual step up in one's mutual funds SIP, SIP calculator suggests that one would require around ₹17,000 to ₹18,000 monthly SIP for 25 years to achieve ₹1 lakh monthly income post-retirement.

Asked about the mutual funds SIP plans that can help an investor achive the above-mentioned investment goal; Pankaj Mathpal, Founder & CEO at Optima Money Managers listed out the following 5 mutual fund plans:

1] ICICI Prudential Focused Equity Fund;