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) 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
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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.
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)
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