How to earn ₹1 lakh every month after retirement:Monthly investment of ₹12,500 for 25 years can do the job for you

To make retirement peaceful, proper financial planning and discipline are essential. If you want to earn ₹1 lakh every month after retirement, it is important to understand how much money will be needed for this and what could be the method to accumulate it. This can be achieved by starting early and investing wisely. It is important to consider impact of inflation on future savings. Because the value of today’s ₹1 lakh will significantly decrease in the next 20-30 years. Therefore, for a monthly income of ₹1 lakh after retirement, planning will have to be done keeping inflation in mind. How much fund is needed for 25 years after retirement According to a report by Economic Times, if you are retiring at the age of 60 and want a monthly income of ₹1 lakh for the next 25 years (until the age of 85), you will have to carefully calculate it. Considering a 6% annual return after retirement and 5% inflation, your accumulated corpus will be around ₹2.5 crore.
This amount will provide ₹1 lakh every month for 25 years. You can do this calculation with the help of an online calculator. What strategy should be adopted to build a retirement corpus? 1. Invest regularly: Invest in mutual funds, especially equity mutual funds, through a Systematic Investment Plan (SIP), which can give an average return of 10-12% in the long term. With an annual investment of ₹1.5 lakh, ₹1.03 crore will be made from the 15+5+5 formula, and ₹65 lakh will be made from interest. PPF’s 15+5+5 formula is a type of investment plan where you let your money grow for 25 years. 2. Diversification: Diversify your investments into equity, debt funds, and other safe options like PPF or fixed deposits. This will reduce risk and provide stable returns. 3. Keep inflation in mind: Inflation will increase your expenses, so prioritise investing in high-return instruments like equity, which can compensate for inflation. 4. Tax Planning: Utilise tax-saving investment options like ELSS (Equity Linked Saving Scheme), which provide exemptions under Section 80C of the Income Tax Act. 5. Regular Review: Regularly review your investment portfolio and adjust it according to your financial condition and goals. ​