Retirement Planning: Is ₹1 crore enough to retire comfortably?

Must Read

1 crore or 5 crore – What is your dream figure to retire comfortably? Well, picking a random big number might give mental satisfaction but it need not provide you with the desired comforts throughout life after you retire from work. The two major hurdles while planning for long term goals are inflation and taxes. You cannot avoid either but you can factor in ‘inflation’ by working on real numbers.

It is important to do the real calculations so you do not fall short of money later. Remember inflation is a monster which is eating up your return on investments every single day.

How much money is enough to retire comfortably?

No one size fits all- Every individual has to do the calculations depending on his or her lifestyle. A person has to consider factors including current standard of living, expected standard of living post retirement, assumed life expectancy or the number of years the person believes he will be alive post retirement, pending liabilities to be paid post retirement, health record and so on.

You can start by answering this question- How much money would you need if you retire today then you can add inflation for the number of years remaining for you to actually retire. This will provide you a clear idea.

If you are know how to calculate ‘Future Value’ of a number, you can calculate the future value of the amount you will need to retire today. You can also take help from the Future Value calculators available online.

Be conservative while doing calculations and start early

It is always better to be conservative while doing calculations towards retirement planning. What if you outlive the number of expected years or, if the annuity rates come down at the time when you retire. Yo must be prepared for such situations as well. There is no harm in saving a little extra than to fall short and repent later.

Once you know how much money you will need at the time of retirement, you can construct a suitable financial plan.

Also start as early as possible to save and invest towards your retirement as it is one of the costliest goals of your life.

Subscribe to newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Source link


Assam’s Dibrugarh University Teacher Arrested For Sharing Porn Video: Police

During interrogation, the accused confessed to the crime. (Representational)Dibrugarh: An assistant professor in Assam's Dibrugarh University was arrested today for allegedly uploading pornographic content...

JK Tyres suspends operations in Mysuru temporarily

JK Tyres and Industries, one of the leading tyre manufacturers in the country, has suspended operations at its facilities in Mysuru after more than...

TDS Rule Amendment : IT Department seeks more disclosure in form

NEW DELHI : After introducing new TDS (tax deducted at source) rates for high-value cash withdrawals from banks, the income tax department has now...

Donald Trump Suspends H-1B, Other Visas Till Year End

Issuing the proclamation, Trump has ignored the mounting opposition to the order (File)Washington: US President Donald Trump has issued a proclamation to suspend issuing...

Lebanon Blasts: Reactions, Support & Condolences across World

See Blast Video - At the End of Post A huge blast in port warehouses near central Beirut storing highly explosive material killed 78 people...


Please enter your comment!
Please enter your name here

Latest Articles