Receive a Monthly Pension of ₹61,000 After Retirement Through PPF
The Public Provident Fund (PPF) remains a reliable option for the middle class to secure their future. The government has maintained the interest rate at 7.1 percent for the first quarter of the financial year 2026-27.
If an investor adopts the '15+5+5' formula, meaning extending their maturity twice for five years each, they can accumulate a substantial fund in 25 years. For this, the investor needs to deposit a maximum of ₹1.5 lakh (approximately ₹12,500 per month) annually. The benefit of compounding in this long-term investment can turn small savings into crores.
During 25 years of continuous investment, the total amount deposited by the investor will be ₹37,50,000. Based on the current annual interest rate of 7.1 percent, approximately ₹65.58 lakh will be added as interest during this period, resulting in a total maturity value of over ₹1.03 crore. The biggest feature of this investment is that it is completely risk-free, and the returns come with a government guarantee.
According to experts, the PPF extension rules are excellent for those who want to accumulate a secure and substantial capital at the time of retirement. Once the fund of ₹1.03 crore is prepared after 25 years, the investor can leave the principal amount in the PPF account without withdrawing it. In this case, the annual interest earned on the deposited amount will be approximately ₹7.31 lakh.
If this annual interest is divided over 12 months, it can be received as a regular income (pension) of about ₹61,000 per month. Notably, the principal amount will remain secure in the bank, and the investor can use only the interest amount for their needs. For maximum benefit, it is considered most advantageous to invest before the 5th of each month.
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