Public Provident Fund (PPF) benefit: Turn Rs 200 a day into Rs 1.3 crore cash, 96000/month pension!

Public Provident Fund (PPF) Pension calculator: Every one of us want to get rich, retire at least with Rs 1 crore. Ever wondered what it will take to reach there? There are many ways, some come with market risks and some are assured by the government

Public Provident Fund (PPF) benefit: Turn Rs 200 a day into Rs 1.3 crore cash, 96000/month pension!
Many times in past, the PPF interest rate has been over 8 per cent/annum.
By Rajeev Kumar
Updated: Mon, Dec 10, 2018
02:38 pm
New Delhi, ZeeBiz WebDesk
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Public Provident Fund (PPF) Pension Calculator: Every one of us want to get rich, retire with at least with Rs 1 crore. Ever wondered what it will take to reach there? There are many ways, some come with market risks and some are assured by the government. For those who don't want to risk their money in the market, Public Provident Fund (PPF) comes as one of the safest options. It can help you accumulate a substantial lump sum over a period of time. In fact, you can retire with as much as around Rs 1.3 crore by saving just Rs 200 a day (= Rs 6000/month or Rs 12000/year). 

Youths these days generally start working at the age of 25. If somebody starts a PPF account at 25 and invest Rs 72,000 per year (saving Rs 200 per day), then at the current rate of 8% interest, he/she can get rich by over Rs 1.3 crore by the age of 60. Here is a calculation: 

PPF Calculator: What Rs 200 a day can give in 15, 20, 25, 30, 35 years

Yr Opening Bal Yearly Amt Interest Closing Bal
1 0 72,000 5,760 77,760
2 77,760 72,000 11,980 161,740
3 161,740 72,000 18,700 252,439
4 252,439 72,000 25,955 350,394
5 350,394 72,000 33,791 456,185
6 456,185 72,000 42,254 570,439
7 570,439 72,000 51,395 693,834
8 693,834 72,000 61,266 827,100
9 827,100 72,000 71,928 971,028
10 971,028 72,000 83,442 1,126,470
11 1,126,470 72,000 95,877 1,294,347
12 1,294,347 72,000 109,307 1,475,654
13 1,475,654 72,000 123,812 1,671,466
14 1,671,466 72,000 139,477 1,882,943
15 1,882,943 72,000 156,395 2,111,338
16 2111338 72000 174667 2358005
17 2358005 72000 194400 2624405
18 2624405 72000 215712 2912117
19 2912117 72000 238729 3222846
20 3222846 72000 263587 3558433
21 3558433 72000 290434 3920867
22 3920867 72000 319429 4312296
23 4312296 72000 350743 4735039
24 4735039 72000 384563 5191602
25 5191602 72000 421088 5684690
26 5684690 72000 460535 6217225
27 6217225 72000 503130 6792363
28 6792363 72000 549149 7413513
29 7413513 72000 598840 8084353
30 8084353 72000 652508 8808861
31 8808861 72000 719468 9591329
32 9591329 72000 773066 10436425
33 10436425 72000 840674 11349099
34 11349099 72000 913687 12334786
35 12334786 72000 992542 13399328

Even if you start saving Rs 200 a day for investing in the PPF account at the age of 30, then you will be able to get around Rs 8808861 (See the chart) at 60. If you start at the age of 35, then you will be able to get Rs 5684690 at the age of 60. Or, if you start at the age of 40, then also you will be able to get around Rs 35 lakh at the age of 60. By investing Rs 13399328 in LIC annuity plans like Jeevan Shanti, one can get a monthly pension of Rs 96,000/month. Similarly, investing  Rs 8808861, Rs 5684690 and Rs 3558433 in Jeevan Shanti plan, you can get Rs 63057,  Rs 40693, Rs 25428 per month pension respectively. 

ALSO READ | Money Magic: Turn Rs 50 a day into Rs 34 lakh, get 25,000 pension, save income tax too!

The final amount you will get after investing Rs 72,000 per year in PPF account may be slightly different as the interest rates are revised regularly by the government. Many times in past, the PPF interest rate has been over 8 per cent/annum. Read more about PPF Here

PPF account has a lock-in period of 15 years. However, it can be extended in blocks of 5 years each.

(Note: Online calculator has been used for the story. The article is for explanation purpose only. All figures have been rounded off. Before investing, read all details carefully)