Retirement Planning: Rs 5 crore retirement corpus has enough for you? Learn why it’s not

Planning retirement: How much is Rs 5 crore? To put it in sight, if it invests in a mutual fund where your anticipated annual return is 7 percent and start a monthly withdrawal plan Rs 330,700 for 30 years. If you invest in an equity fund where you get a long annual return of 12 percent for 20 years, it will flow to Rs 48.24 crore.

In any imagery, a value of Rs 5 amounts with enough for many Indians to spend a free financial retirement.

But if you are 30 years old 40,000 monthly expenses, is the same amount for you 30 years from now in a 20-year-old retirement period?

Through our calculations, know why it is not and what your target is.

What can your Corpus retire?

Let’s assume that you are 30 years old, expected to retire for 60 years of age, and wants money to 80 years of age; Corpus is calculated to be adjusted against inflation until the last day of your retirement.

Now if you get Rs 30,000 one month and keep the same lifestyle in 20 years of retirement, you need to know your monthly amounts until the 80th year of your life in the 80th year.

If there are other financial purposes of retirement, the amount progresses the age you want to achieve this and add to the required corpus.

Your monthly costs at 80 years of age

If you are 30 years old and your monthly cost is 50,000 a month, your life is in life 80 years, and how your spending is going on with the same style of your retirement.

You can see that if you want to start your retirement in 60 years old, your monthly costs go up Rs 2,87,174.56.

If you need your corpus up to 80 years of age, in the last year of your retirement, the estimated monthly cost of Rs 9,21,71.

Retirement corpus you need to keep the same lifestyle

You see how we caused the inflreet to calculate the future monthly costs.

Now if you want to know the retirement corpus you need, the other important factor need is to return to post-retirement investment.

Considering a 6 percent inflation and 7 percent annual post-retired return, you need approximately Corpus Rs 6,31,36,564.16 for your 20-year retirement period.

Now see what you need to corpus if your monthly income is at Rs 30,000-Rs 100,000 range.

You will find that if your monthly cost of Rs 30,000, your estimated retret corpus can be Rs 3,79,539, while there may be approx corpus Rs 12,62,328.32.

If you look at the table, if your current expenditure is Rs 40,000 a month, an Rs 5 crore retirement corpus may not be enough for you.

What do you need to do

You need to calculate the amount you need for your retirement and investment according to reaching that purpose.

(DISCLAIM: This is not investing advice. Do your own hard work or consult an expert for financial planning.)