Retirement planning: How senior citizens can get Rs 1 lakh monthly pension; check calculation

economictimes.indiatimes.com:

senior citizen earn a regular pension of Rs 1 lakh every month after retirement? A common question that is often asked by those who are about to retire. While investing your hard-earned money, you need to plan well and consider multiple factors — inflation, your risk appetite, how much return it will deliver, how much tax you have to pay, how liquid your investment is, etc. Keeping all these factors in mind, ET Wealth Online tries to derive a retirement plan for senior citizens that can fetch a Rs 1 lakh monthly pension.

How can senior citizens get a monthly pension of Rs 1 lakh?

The first thing that senior citizens need to ensure that they have the desired corpus to generate the monthly pension. Soumya Sarkar, Co-Founder, of Wealth Redefine, says «To achieve a monthly pension of Rs 1 lakh, senior citizens typically need an investment of approximately Rs 1.2 crore to Rs 1.5 crore. This estimate is based on an expected return rate of 8-10%.»
Now where a senior citizen needs to invest will depend on his risk appetite. If you are a conservative investor, you will prefer debt instruments such as fixed deposits, Post Office Monthly Income Scheme (POMIS), Senior Citizen Savings Scheme (SCSS), RBI Floating Rate Savings Bonds, government securities and debt mutual funds. However, if you need higher return and if you have a higher risk tolerance, you can opt for equity-oriented mutual funds.

Anand K. Rathi, Co-Founder of MIRA Money says, «A balanced investment approach involving both debt (like fixed deposits or bonds,