How to Get 15k Pension Per Month

In summary

You can target a Rs. 15,000 monthly retirement income by building a suitable corpus through regular savings, investments, annuities or life insurance savings plans. A Rs. 15,000 monthly pension equals Rs. 1.8 lakh a year. You would need a corpus of about Rs. 20.94 lakh to receive Rs. 15,000 every month for 20 years, assuming a 6% annual return.

• Life insurance savings plans can combine life cover with long-term savings.
• Pension annuities can provide regular income after retirement.
• ULIPs offer market-linked investment options along with life cover.
• Fixed deposits and mutual funds can also form part of a diversified retirement plan.
• Starting early gives your savings more time to benefit from compounding.

Retirement planning works better when you match the investment period, required corpus and income goal. You can explore life insurance plans with retirement benefits for enhanced finanical protection. These plans offer life cover and options that can complement your retirement planning. Get quote!

1. Estimate the corpus: A corpus of around Rs. 21 lakh can support Rs. 15,000 monthly for 20 years at a 6% return.
2. Choose a suitable plan: Compare a monthly pension plan in India based on payout options, tenure and terms.
3. Start investing early: For example, investing Rs. 3,000 monthly at 6% for 25 years can help build a substantial retirement corpus.
4. Purchase an annuity: At retirement, use the accumulated corpus to buy an annuity suited to your income needs.

This approach can help you plan for a steady post-retirement income.

1. Build a retirement corpus early: Start investing regularly and allow compounding to work over a longer period. Consistent contributions can make the required corpus easier to build. 
2. Use an annuity for regular income: At retirement, a suitable portion of your corpus can be used to purchase an annuity that provides periodic income.
3. Consider NPS: NPS can help build a retirement corpus, with part of the accumulated amount used to purchase an annuity at retirement. 
4. Increase contributions over time: Raise your investment as your income increases to strengthen your retirement corpus. This can help account for inflation and changing retirement needs. 

The exact corpus required depends on your retirement age, investment period, returns, inflation and chosen annuity terms.

• Dual benefits:

Life insurance savings plans combine life cover with disciplined savings, helping you work towards long-term goals such as retirement. While the life cover helps protect your family against an unforeseen event, regular premiums can help you build savings over the policy term.

• Guaranteed returns:

Many savings plans offer guaranteed maturity benefits or income options, subject to the policy terms. This can provide greater predictability when planning your post-retirement finances, helping you prepare for regular expenses without relying entirely on market-linked returns.

• Tax benefits:

Life insurance premiums may qualify for tax deductions under Section 123 of the Income Tax Act, 2025, subject to applicable conditions and the tax regime chosen. Tax treatment of policy benefits depends on the prevailing tax laws and the specific policy.

Actionable steps to achieve Rs. 15,000 pension:

• Start investing early to benefit from compounding.
• Choose plans with regular premium payments to build a corpus steadily.
• Use tools like the Human Life Value calculator to determine the amount you need to invest.

Securing a steady retirement income requires choosing suitable investment plans and considering how the accumulated corpus will generate regular income after retirement.

Most preferred options for achieving Rs. 15,000 monthly pension:

• Life insurance savings plans:

Life insurance savings plans can help you build a retirement corpus through disciplined premiums while providing life cover. Depending on the policy, benefits may include guaranteed payouts at maturity or other income options, subject to the policy terms.

• Pension annuities:

Annuities can convert a retirement corpus into a regular income stream. An immediate annuity can start income soon after purchase, while a deferred annuity is designed to provide income at a later stage. The payout depends on the annuity option and applicable terms.

• Unit Linked Insurance Plans (ULIPs):

ULIPs combine life insurance with market-linked investments. They can help build a retirement corpus over the long term, but returns are linked to the performance of the selected funds and are not guaranteed.

• Fixed deposits and mutual funds:

Fixed deposits can provide relatively predictable interest income, while mutual funds offer market-linked growth potential and diversification. Mutual funds carry investment risk, so their returns cannot be treated as guaranteed.

Why these options work

• Security: Some insurance plans offer guaranteed benefits, subject to policy terms.
• Flexibility: Different products offer varying investment periods, payout choices and risk levels.
• Growth potential: Market-linked options can help build a retirement corpus over a longer investment horizon.

Choose an option based on your retirement age, income needs, investment horizon and risk tolerance. Compare plans and get quote!

Why tenure and frequency matter:

• Compounding benefits: Long-term investments can give your contributions more time to grow through compounding. Starting early can therefore make it easier to build a retirement corpus.
• Flexibility: Choose a payment frequency that matches your regular income. Monthly, quarterly or annual contributions can work, depending on the investment option and its terms.
• Wealth accumulation: Regular contributions can help you build your retirement corpus gradually and maintain investment discipline.

Example of investment tenure

For example, investing Rs. 3,000 every month from age 30 to 60 at an assumed 7% annual return could build a corpus of around Rs. 36.6 lakh. Actual returns may vary depending on the investment option.

Steps to calculate your premium:

• Estimate your monthly retirement income and retirement age.
• Factor in inflation and the number of years you expect to need the income.
• Calculate the corpus required for your target monthly pension.
• Determine the monthly investment needed to build that corpus.

Example of premium calculation

Suppose you want Rs. 15,000 monthly income for 20 years after retirement and assume a 6% annual return during the withdrawal period. You would need a corpus of approximately Rs. 20.94 lakh, or around Rs. 21 lakh.

To build a similar corpus, investing Rs. 3,000 monthly for 25 years at an assumed 6% annual return could grow to approximately Rs. 20.79 lakh. Actual returns may vary, and an annuity's payout depends on the applicable annuity rates and selected option.

Under the Income Tax Act, 2025, Section 123 provides a deduction of up to Rs. 1.5 lakh in aggregate for specified savings instruments, subject to eligibility. This deduction is not available under the new tax regime.

The tax treatment of pension or annuity income is different. Pension or annuity payments received by you are generally taxable as income in your hands, based on the applicable tax provisions.

For a pension plan linked to life insurance, the tax treatment of premiums and payouts depends on the nature of the policy and whether the applicable conditions for tax benefits are met.

Note: Tax laws are subject to change. BFL does not provide tax or investment advisory services. Please consult your advisers.

• Life insurance calculator: 

Helps you estimate the coverage required to safeguard your family’s future while keeping your retirement goals intact. Use the life insurance calculator ensures your retirement savings are preserved for your golden years.

• Term insurance calculator: 

Allows you to calculate premiums for your desired coverage using the term insurance calculator. This tool provides affordable protection, so your family’s security doesn’t impact your retirement corpus.

• ULIP calculator: 

Projects investment growth and insurance benefits together using the ULIP calculator. Ideal for those aiming at retirement planning for Rs. 15,000, as it balances wealth creation with risk protection.

• Annuity calculator: 

Calculates fixed lifelong income based on your investment using the annuity calculator. It is highly useful if you want to plan how to earn Rs. 15,000 monthly pension with guaranteed payouts.

• NPS calculator: 

Estimates the retirement corpus and future income from the National Pension System using the NPS calculator, helping you plan steady long-term savings.

• Postal life insurance calculator: 

Provides maturity and premium details for safe, low-risk savings, making the Postal Life Insurance calculator suitable for conservative retirement planners.

Securing a Rs. 15,000 monthly pension requires careful financial planning and consistent saving. Bajaj Finance Insurance Mall lets you compare pension plans, annuity options and other insurance-based savings plans from leading insurers, helping you evaluate options based on your retirement goals and financial needs.

Start planning early to give your savings more time to grow and build a retirement income strategy that aligns with your future needs.