Plan your retirement by calculating the corpus needed and monthly savings required. Factor in inflation and expected returns for accurate planning.
Retirement planning is the process of determining retirement income goals and the actions necessary to achieve those goals. It involves identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk.
For a 30-year-old planning to retire at 60 with ₹50,000 monthly expenses:
Required Retirement Corpus: ₹4.32 Crores
Monthly SIP Required: ₹25,847
Total Investment: ₹93.05 Lakhs
Wealth Creation: ₹3.39 Crores
Key factors in retirement planning:
Start Early: Benefit from compound interest over longer periods.
Diversify Investments: Mix of equity, debt, and other assets.
Regular Review: Adjust plan based on life changes and market conditions.
Tax Planning: Use tax-efficient investment options like ELSS, PPF, NPS.
The earlier you start, the less you need to save monthly due to the power of compounding.
Future value of current expenses:
Where Real Return = (Expected Return - Inflation) / (1 + Inflation)
Where r = monthly return rate, n = number of months
• Rule of 25: Corpus = 25 × Annual Expenses
• 4% Rule: Withdraw 4% annually from corpus
• Age Formula: Equity % = 100 - Age
• Emergency Fund: 6-12 months expenses separate