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I am 30 years old and would like to retire at 60.I pension of INR 2,000 per month at today’s prices when I retire. How much do I need to contribute?

April 26, 2017INR month Pension retire today

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I am 30 years old and would like to retire at 60.I pension of INR 2,000 per month at today’s prices when I retire. How much do I need to contribute?

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A. You would need a pension wealth of INR 319,000(at today’s price) at age 60 to get a pension of INR 2,000 per month (at today’s prices). To realize this pension wealth, you would need to contribute approximately INR 16,600 every year. Assumptions: 2% real rate of return, NPS charges as applicable, current LIC annuity rates,100% annuitisation of terminal pension corpus.