POSTED BY SREEKANTH ON July 8, 2012 4:58 pm COMMENTS (6)

Dear Ashal and team,

if i have 1 crore at my 50 years of age, where should i invest my corpus to get monthly pension for ever.

iam now 38

Thanks & regards
B.Sreeka th

6 replies on this article “PENSION”

  1. SREEKANTH says:

    excellent ashal, thanks for your detailed response.

  2. Dear Sreekanth, first of all I want to know the value of 1Crore Rs. after 12Y. I.e. the impact of inflation. @ running inflation of 10% in retail – do you know what ‘ll be the value of those 1C Rs. in next 12Y when you turn 50?

    34L Rs. of today’s value & this ‘ll keep going down & down & down after that.

    Please share your views?



    1. SREEKANTH says:

      Thanks Ashal for the prompt reply.

      However the value is not the concern now it may be any value. the Purpose of pre planning is due to the following reasons.

      1. Requirement of Monthly pension after 12 years.
      2. What are the Methodologies and where to put the Corpus so that Monthly pension can be taken.
      3. This 1 Crore is not for Re-investment it is just for Monthly pension for ever.

      4. What are the various schemes available for this Corpus to get monthly pension.
      5. As you know all the private employees will not get any pension after the retirement, hence monthly pension has to be planned in advance.
      6. To repeat this may be 1 Crore or 1.5 Crore or 2 Crore the discussion is on the Methodology on how to get the Monthly pension.

      Please share your whole hearted views

      Thanks & regards

      1. Dear Sreekanth, the discussion of methodology is of no value as of now. The reason is – down the line the picture may not be same after 12-15 years when you actually going to purchase an annuity plan. As of now, the aim should be to create a corpus as big as you can make.

        Interestingly for my personal money I w’d like to use MFs & then SWP from there for my needs.



        1. SREEKANTH says:

          Thanks Ashal, i am know clear. Thanks for your advise. i will do it.

          Two queries.

          1. Describe what is annuity plan and how to do it and how it works.
          2. what is SWP.

          Thanks & regards

          1. Dear Sreekanth, Here are the answers.

            1. Annuity plan is nothing but the generic term used by insurance cos. for the popularly called pension plan. The Annuity plans are of 2 types –

            A. Deferred Annuity Plan – Here for next 10-15-20-25Y you ‘ll invest to create a corpus & at the end of the term of policy, the annuity payment ‘ll start from the accumulated corpus.

            B. Immediate Annuity Plan – Here you pay a lump sum amount & the annuity start from the next month/qutr./1/2year or year.

            2. SWP – Stands for Systematic Withdraw Plan. In this option, you withdraw money systematically from the corpus in your MF (weekly/mly/qutr/…..). this MF may be a pure Eq. or Pure Debt or Hybrid fund.



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