Many people often use their lump sum savings to buy assets like real estate or gold, believing these are the safest investment options for long-term wealth. While this logic isn’t wrong, there are smarter ways to use a large amount of money — especially if you want regular monthly income rather than waiting years for asset appreciation.
Imagine if you could make a one-time investment and receive a fixed monthly income for life, just like a pension. This not only ensures financial security after retirement but also gives you peace of mind, knowing your monthly expenses are covered without the need to sell your property or gold holdings.
Financial experts suggest that with the right investment strategy, you can turn a ₹10 lakh lump sum into a monthly payout of around ₹1,75,000 under certain annuity or pension schemes. These plans are designed to convert your investment into a steady income, providing stability, especially post-retirement.
When you retire or face a financial emergency, liquidating your assets like real estate or gold can sometimes take weeks or months, and may force you to sell below market price. On the other hand, a fixed monthly income:
Covers daily expenses without financial stress.
Ensures you never need to sell your hard-earned assets.
Gives long-term planning flexibility.
Several banks, insurance companies, and financial institutions offer guaranteed monthly income plans. These are usually designed under two formats:
Immediate Annuity Plans
You invest once, and the payout starts the very next month.
Deferred Annuity Plans
You invest now and receive income after a fixed period, offering even higher returns.
If you have savings like ₹10 lakh or more and you're concerned about post-retirement income or passive cash flow, these plans are worth exploring. Always consult a certified financial advisor before investing to select a scheme aligned with your risk appetite and goals.
While gold and property are valuable, they don’t offer consistent monthly returns unless sold. If financial freedom and peace of mind are your goals, turning your lump sum into a monthly income source is one of the smartest choices.
