Retirement Planning 2025: How to Maximize Monthly Income from ₹50 Lakh Retirement Corpus

By Siddhi Jain | Jul 11, 2025, 18:30 IST

If you're about to retire and expect to receive around ₹50–60 lakh from your EPF, gratuity, or other sources, financial planners say you can ensure a steady monthly income post-retirement without the stress of stock market risks.

Many retirees like Rohit Singh, a private sector employee, are looking for safe and regular income sources instead of volatile investments like mutual funds or shares. The good news? There are government-backed schemes that offer stable monthly payouts with minimal risk.

✅ Top 2 Government Schemes for Monthly Income

1. Senior Citizens Savings Scheme (SCSS)

Eligibility: Individuals aged 60 years and above.
Interest Rate (July–September 2025): 8.2% per annum (paid quarterly).
Maximum Investment: ₹30 lakh (single or joint).
Tenure: 5 years (extendable by 3 years).

Returns Example:
If Singh invests ₹30 lakh in SCSS, he’ll get ₹61,500 every quarter, which translates to approximately ₹20,500/month in interest income.

✅ Key Benefits:

Backed by the government.

Fixed income, tax benefits under Section 80C.

Suitable for retirees needing a predictable income flow.

2. Post Office Monthly Income Scheme (POMIS)

Interest Rate: 7.4% per annum (paid monthly).
Maximum Investment: ₹9 lakh (single), ₹15 lakh (joint).
Tenure: 5 years.

Returns Example:
If Singh and his spouse invest ₹15 lakh jointly, they’ll earn ₹9,250/month in interest.

✅ Key Benefits:

Monthly payout for regular income.

Government-backed, no market volatility.

Safe for those who want minimal risk.

💡 Total Monthly Income from ₹45 Lakh Investment

Scheme	Amount Invested	Monthly Income
SCSS	₹30,00,000	₹20,500
POMIS	₹15,00,000	₹9,250
Total	₹45,00,000	₹29,750

So with a ₹45 lakh allocation in just these two schemes, Singh will receive nearly ₹30,000 per month in guaranteed, risk-free income.

🔒 What About the Remaining ₹5 Lakh?

The remaining ₹5 lakh can be safely kept in:

A bank fixed deposit (FD) as an emergency fund.
Or, split between a liquid mutual fund and FD for slightly better returns (optional).

This cushion ensures medical emergencies, travel, or unexpected expenses are covered.

📊 Other Alternatives for Diversification (Optional)

For slightly higher returns (with low to moderate risk):

Corporate Bonds/Debentures (AAA-rated only).
RBI Floating Rate Savings Bonds (currently 8.05%).
Senior Citizen FDs with higher rates (7.5–8%).

However, retirees should stick to capital protection and regular income options.

✅ Bottom Line

With ₹50 lakh at retirement:

You can secure ₹30,000+ in monthly income without stock market risks.
Government schemes like SCSS and POMIS offer reliable and stable returns.
The remaining funds can serve as a safety net for emergencies.

📌 Pro Tip: Always consider inflation. Reassess your investments every 5 years to adjust for changing expenses.