Do this before retirement... This is the way to get a Rs.10 crore pension!

If a 40-year-old earns an average return of 10% on investments, he would need to invest Rs 1,31,688 per month for 20 years to accumulate a pension fund of Rs 10 crore. people in their 40s should start saving a substantial amount immediately to have a comfortable life after retirement. This would be the right time for that. The younger we start investing, the lower the monthly installments we can ensure.

Due to compound interest, the starting age becomes important in pension scheme. Even saving 10% return starting in your 20s can earn you a significant maturity amount with a moderate monthly investment. If a 20-year-old invests in schemes like PPF and fixed deposits, he will get 7% to 8% returns over the next 40 years. Mutual funds provide an average return of 12%. About 16,000 rupees should be invested every month.

If a 40-year-old earns an average return of 10% on investments, he would need to invest Rs 1,31,688 per month for 20 years to accumulate a pension fund of Rs 10 crore. Data compiled by the Pension Fund Regulatory and Development Authority (PFRDA) in a table shows that individuals in different age groups have Rs. 10 crore monthly investments and average income required for retirement. Accordingly, the return on investment for people aged 20 to 55 years is between 5% and 14%.

Investments with higher returns reduce monthly contributions further. Conversely, those who are willing to take risks, need investment strategies that yield 15% to 25% returns. This can significantly reduce the monthly contribution. This approach is most useful for people between the ages of 40 and 55 to start investing. This prompts them to accelerate their pension maturity. However, while following the PFRDA calculation, it is important to note that investments with high returns also come with high risks