Skip Navigation
0 of 0 Displaying
 |   Displaying

No Results

    Monthly Income Sources After Retirement in India

    Last Updated On 12-04-2023

    Proper retirement planning includes identifying monthly income sources once your regular cash flow stops when you reach your golden years. Meeting your needs and matching your current lifestyle after you retire is possible if you take advantage of different retirement plans for ongoing financial support. Keep reading to find out more about monthly income sources after retirement in India.

    Get a Callback

    OTP sent successfully

    Thank you for getting in touch with us. We will contact you shortly.

    How to Earn Money After Retirement in India

    Knowing how to earn money after retirement in India is important if you want to remain independent in your golden years. There are a number of retirement plan options available for providing continuous income after you retire. Before deciding which plans to invest in, consider other factors such as your retirement goals and corpus.

    Determine Your Retirement Goals

    Determining your retirement goals from an early age helps you to understand why putting aside savings for your later years does matter. Factors such as independence, what age you want to retire, meeting personal life dreams, and matching your current lifestyle should be considered when planning for your retirement.
    Setting retirement goals allow you to calculate how much you need and to invest properly for a steady monthly income after you retire. Having benchmarks along the way commits you to save towards your retirement goals.

    Retirement Corpus Calculators

    Calculating your retirement corpus requires knowing the number of years you have until you retire, accounting for inflation, and estimating your daily and annual expenses in your golden years. You’ll need to know your life expectancy once you retire as well as income sources post-retirement.
    Using retirement corpus calculators ensures you take into consideration all the necessary factors to get the correct amount required post-retirement. It’s a useful tool for planning your investments so that you get the required retirement corpus after you retire.

    Determine Your Retirement Income Sources

    There are a number of retirement income sources for Indians to consider, allowing them to save and invest their money in preparation for retiring from work. Determining these options depends on your retirement goals and how much steady income you need when you retire.
    Identifying potential sources of retirement income gives the retiree peace of mind their essential living expenses will be covered while factoring in unexpected costs such as medical bills.

    Sources of Income Post-Retirement

    Post-retirement income streams in India include both guaranteed and non-guaranteed sources.

    Guaranteed Income Sources

    With guaranteed returns on your savings or investments, these plans provide a steady income stream to support your financial needs in your retirement years.

    Pension Plans

    When you reach your retirement, you want to kick back and relax knowing your rewards for a lifetime of hard work will see you comfortably through your golden years. Proper retirement income planning will ensure this happens and having a pension plan is one way of guaranteeing a secure future.
    Purchasing a pension plan early in your career requires paying a regular premium which is invested into a fund determined by the policyholder. On retirement, the policy provider will pay out a lifetime pension to the retiree, guaranteeing a steady income post-retirement.

    National Pension Scheme (Annuities)

    Backed by the Indian government, the National Pension Scheme (NPS) is a voluntary retirement scheme made available to citizens of India aged between 18 and 65 years old. It’s managed by the Pension Fund Regulatory and Development Authority (PFRDA) and lets working Indian citizens contribute to their retirement years.
    It works by depositing 60 percent of the corpus into the applicant’s bank account on retirement while using the remaining 40 percent to purchase annuities. This generates a steady income stream for the retiree.

    Public Provident Fund (PPF)

    First introduced by the National Savings Institute of the Ministry of Finance in 1968, the Public Provident Fund (PPF) was established to offer Indians a tool for growing their savings. The scheme acts as a savings instrument, allowing small investors fair returns with income tax benefits.
    This savings-cum-investment vehicle gives competitive interest rates with a 15-year tenure and tax deduction in line with Section 80C of the Income Tax Act. Other benefits include low-risk investments with guaranteed returns.

    Senior Citizen Savings Scheme (SCSS)

    Another scheme backed by the Indian government is the Senior Citizen Savings Scheme (SCRS.) Designed to help you plan for your retirement years, the scheme is eligible for Indian senior citizens who are 60 years or older.
    Its benefits include a higher interest rate compared to other savings plans, tax benefits, substantial returns, premature withdrawal options, and deposit amount flexibility.

    Systematic Withdrawal Plan (SWP)

    If you’re investing in a mutual fund in India you most likely have the option of a Systematic Withdrawal Plan (SWP.) This feature lets the investor decide the amount they would like to withdraw from their mutual fund at fixed intervals.
    The SWP allows the investor to continue investing in their mutual fund throughout their earning years while having the freedom to receive a steady income stream post-retirement.

    Non-Guaranteed Income Sources

    Non-guaranteed income sources come with substantial returns but at a higher risk. Payouts aren’t guaranteed but diversifying your retirement investment is another way of generating income flow during your golden years.

    Stock Investments (Dividends)

    Stock investments or dividends are designed to give you long-term growth while offsetting inflation effects. They give you the opportunity to benefit from robust market performance but investors are exposed to volatility at the same time.
    Adding stock investments to your retirement portfolio can see you earning dividends well into your golden years. However, it shouldn’t be your only source of income as it does come with risks.

    Unit-Linked Insurance Plan (ULIP)

    Unit-linked insurance plans (ULIPs) is a long-term investment approach to bolster your retirement portfolio. It includes dual benefits in that if offers both investment and insurance features. Providing both life cover and high returns, a ULIP is a viable option for growing your retirement wealth while offering protection at the same time.
    Premiums are divided into two parts, with one part invested into funds and the other going toward the insurance component of the plan. Policyholders benefit from tax deductions on paid premiums in accordance with Section 80C of the Income Tax Act in India.

    Investing in Assets

    Investment diversification in retirement vehicles as well as within asset classes gives your overall financial portfolio a broad spectrum of income sources. Traditional asset classes include properties, equities, cash, and bonds. Identifying the right financial instrument for retirement income is vital when taking into consideration market fluctuations and risks.
    Indian citizens can invest in government bonds, real estate, gold, mutual funds, or fixed deposits for growing their wealth with low- to high-risk features. Knowing your retirement goals and risk tolerance will help you decide which asset investments are right for your post-retirement needs.

    Plan Early to Ensure a Steady Monthly Income Post-Retirement

    Indian citizens have a number of options available to them when planning a steady monthly income for post-retirement purposes. However, getting the most benefits out of any of the options mentioned in this article requires planning early.
    Planning ahead of time lets you make the right investments with your money, giving you peace of mind, you’ll have a steady monthly income after retirement. The more years you spend saving and investing your money, the more your wealth will accumulate for post-retirement. Make sure you invest in the best income sources for your retirement in India!

    Frequently Asked Questions

    Expand All Collapse All

    How much monthly income do I need to retire?

    Collapsed Expanded

    The rule of thumb is an amount equivalent to 70 to 80 percent of your total salary just before retirement to ensure you have sufficient monthly income when you retire. Calculating retirement income depends on variable and fixed expenses, earnings, health, and life expectancy rate.

    What is the average monthly retirement income?

    Collapsed Expanded

    The average monthly retirement income in India varies from person to person. Calculating this amount depends on a number of factors such as your age when you plan to retire and living expenses. Estimating the average monthly retirement income includes your living expenses, healthcare costs, luxuries such as holidays, and emergencies. Adjusting for inflation is vital to ensure you save enough for your retirement corpus investment.

    What are the three pillars of retirement income?

    Collapsed Expanded

    Planning for your golden years should factor in the three pillars of retirement. These refer to government-administered schemes, employment-based pension plans, and personal retirement savings plan or policies. In India, citizens can invest in pension plans, NPS, SCSS, PPF, stock investments, assets, ULIPs, or SWPs as part of their retirement portfolio.

    What is the best investment after retirement?

    Collapsed Expanded

    The best investment options after retirement in India include the Senior Citizen Savings Scheme, Government of India bonds, fixed deposits with high returns, or immediate annuity plans. Investing in low-risk savings or investment options with guaranteed returns is recommended when growing your money post-retirement.

    Which retirement benefits are exempt from income tax?

    Collapsed Expanded

    According to the Indian Income Tax Act, 1961, all income is taxable including pensions. However, if you agree to a lump sum payout as a government employee you’re exempted from tax. Private individuals are given one-third of their lump sum payout tax-free. Provident fund returns are exempted from tax unless you invest in a private pension fund scheme.

    Is a retirement pension considered income?

    Collapsed Expanded

    Under the tax laws of the Indian government, a retirement pension is considered income. It’s taxed according to the income tax slab rates and retirement age. However, individuals under the age of 60 years old with an annual income of up to Rs. 2.5 Lakhs have a nil tax rate. The same applies to retired individuals between 60 to 80 years old earning an annual retirement income of up to Rs. 3 Lakhs.


    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883

    Terms & conditions apply, Benefits stipulated are subject to premiums paid and policies in-force. For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale. Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details. Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time. The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.

    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website:, Email: or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.




    Buying annuity? Read this before you take the plunge

    The retirement years can be a wonderful period in life when planned properly. You can sit back, relax, travel, rest and do whatever you want with a...


    Picking a suitable Life Insurance plan | PNB MetLife Insurance

    As the health insurance needs of individuals have grown, health insurance companies in India have made sure to launch better plans offering a wider...


    Dreaming of your new daily life - retirement planning

    Financial security is a key component of a happy retirement, but how you choose to spend your daily life throughout retirement is critical as well....


    Life insurance is imperative as a safeguard against the uncertainties that hover around us all the while. Human life is fragile and subject to risk...


    Tips to manage your finances for your dream retirement home

    Building a retirement nest is easy if you use your pre-retirement years well. We share 5 tips.. It is every person’s dream to have a peaceful reti...

    Want to know more about how you can protect your family?

    See all our articles


    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at or You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

    Site best viewed in following browsers
    Chrome 70+ , IE 11+, Firefox 76+, Safari 11+

    Get a Callback Get a Callback

    Ask khUshi

    Hi! I’m khUshi. How can I help you?