Hello Anil,
Hope you are doing well...!
I am 43 years of age living with my parents (Father aged 77 and Mother 73), working spouse (aged 42) and 13 years daughter. We are planning to retire by 50. Please have a look at below -
Our current investment corpus value is 1.10 CR which includes EPF, PPF, LIC, MF, Shares, Jewellery.
We are expecting this to grow up to 2.50 CR by the end of March 2032, with regular investments, power of compounding and NIL withdrawals.
We both are insured with Mediclaim and Term insurance. Parents are covered with Mediclaim which my employer has provided.
Our current monthly expenses are 1.20 lacs per month.
Currently we have invested around 13 lacs in MF for daughter's future (the same are over and above 1.10 CR)
Kindly advise us if we both can retire in 2032 with a corpus of 2.50 CR which we can use for next 30 years considering life expectancy of 80 years.
Warm Regards,
Vishwas Joshi
Ans: You have done a thoughtful job of planning. It is wonderful to see both of you thinking ahead about retirement and family care.
Let us now assess your retirement plan in a complete and professional way. We'll go step-by-step from all angles — expenses, corpus, risks, and improvements.
Please read this answer slowly. Every point is kept short on purpose.
Family Setup and Retirement Goal
You are 43 now. Your spouse is 42.
You want to retire at 50. That gives you 7 more working years.
Your daughter is 13. She may need higher education funding in 5 years.
Parents are elderly and covered by employer health policy.
You wish to retire with Rs. 2.5 crore corpus and no withdrawals till then.
You will need this corpus to support both of you till age 80.
Current Expenses and Inflation Impact
Monthly expense is Rs. 1.20 lakh. That’s Rs. 14.40 lakh yearly.
In 7 years, due to inflation, this will rise sharply.
Even at 6% inflation, your monthly cost can double by retirement.
That means, you may need around Rs. 2.00 lakh per month at age 50.
Yearly expenses at that time will be around Rs. 24 lakh.
If costs rise every year after retirement, expenses will keep growing.
In 30 years post-retirement, this creates a large withdrawal need.
Expected Corpus and Its Sufficiency
You have Rs. 1.10 crore now, including EPF, PPF, LIC, MF, Shares, and jewellery.
You are expecting this to grow to Rs. 2.50 crore by March 2032.
Assuming there are no withdrawals, this looks achievable with steady SIPs.
But the question is — is Rs. 2.5 crore enough?
Sadly, for a 30-year retirement, this corpus may fall short.
Even with moderate returns post-retirement, you may run out of money.
If inflation eats into the buying power, withdrawals will grow yearly.
Rs. 2.5 crore will not be able to keep up after 10–15 years.
So, the target corpus needs to be much higher.
A safer target would be Rs. 4.5 to 5 crore by age 50.
Strengths in Your Financial Plan
You are investing regularly. This builds strong habit and discipline.
You have term insurance for protection. That’s a smart move.
Mediclaim covers for all. This avoids unexpected expense risk.
You have planned daughter’s goal separately. That’s very wise.
Your no-withdrawal mindset is excellent. Wealth grows silently this way.
Weaknesses or Risk Areas to Fix
Your current monthly spending is quite high. Rs. 1.20 lakh is steep.
If this lifestyle continues, you will need a much larger retirement fund.
Your corpus growth expectation seems low. 2.5 crore may fall short.
There is no mention of emergency fund. That is a basic must.
LIC included in corpus — if it is insurance-cum-investment, it underperforms.
Jewellery is not liquid. It cannot be used easily for retirement.
Immediate Action Plan Before Retirement
Review all LIC and insurance-linked plans.
If you hold any ULIP or Endowment, surrender and reinvest in mutual funds.
Use mutual funds through a Certified Financial Planner + MFD.
Do not invest in direct funds. You may miss guidance and make mistakes.
Direct mutual funds look cheaper, but regular plans give handholding.
Expert helps you with rebalancing, tax planning, and fund choice.
That adds real value over long periods.
Mutual Fund Portfolio Suggestions
Increase SIP amount if possible. Rs. 25,000–30,000 more per month will help.
Focus more on large and flexi-cap categories.
Add some balanced or hybrid funds for stability.
Small caps and thematic funds are high risk. Use them only in small amount.
Review your SIPs every year with your Certified Financial Planner.
Rebalancing is key to protect returns and lower risk.
Taxation Planning
From 2024, mutual fund tax rules have changed.
Equity MFs: LTCG above Rs. 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
Debt MFs: All gains (short or long) taxed as per your income slab.
Use this tax info to book profits smartly each year.
Don’t redeem in panic. Plan exits in phases to reduce tax impact.
Child’s Education Goal – Additional Suggestions
Rs. 13 lakh invested is good. But future cost may be Rs. 50–75 lakh.
Add at least Rs. 10,000–15,000 SIP monthly for this goal.
Keep it separate from retirement funds.
Use conservative to balanced equity funds.
Keep 3 years of fee ready in debt funds when child turns 16.
Lifestyle, Expenses and Budgeting Tips
Try reducing monthly spend to Rs. 1 lakh or below.
That will save Rs. 2.4 lakh per year. Over 7 years, this is Rs. 16–17 lakh.
These savings can go to your retirement fund.
Avoid spending on low-value items or unnecessary upgrades.
Track every rupee for next 12 months. Then optimise expenses.
What to Do About Jewellery
Keep it for family use. Do not count it in retirement fund.
Gold gives low returns and no income.
If you must use, do so in emergency only.
Try not to hold more gold than 5% of total net worth.
Asset Mix – Diversification Tips
After retirement, don’t keep all money in equity.
Keep about 30% in debt funds or safer options.
Keep 12–18 months expenses in liquid funds.
Rest in diversified equity mutual funds.
This keeps your capital safe and still gives long-term growth.
Emergency Fund and Health Risks
Keep Rs. 5–7 lakh in a separate emergency fund.
This should be in FD or liquid fund, not used for investment.
Medical cost can shoot up after retirement. Plan for top-up mediclaim.
Your parents are aging. Company health cover may stop if you retire.
Check if you can add them in a private policy now.
After Retirement Strategy
Withdraw only what you need every year.
Increase SIP in last 7 years to build a buffer.
Delay big expenses like world travel, renovation etc. until 2–3 years post-retirement.
Every rupee saved in first 5 years will double its impact later.
Finally
You both are on the right track. But Rs. 2.5 crore is not enough.
Increase investment amount and adjust lifestyle for the next 7 years.
Target Rs. 4.5 to 5 crore. That will give better safety and peace.
Use professional guidance. Don’t manage alone at this stage.
You have made a strong base. Now build wisely on it.
You can surely retire early with the right steps from today.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment