I am 52 years, have nil loans. I retire in 2 years. My assets are: 2 cr in equity, 1.5 cr in PF and gratuity. I have 2 flats one on rent at 14k, one locked but with a notional rent of 45k. I have 35 lks in LIC policy maturing in 2 years. I will get 1.2 lks per month as pension. I have health benefit for life. My son will be finishing 12th and daughter her last college year on my retirement. My house hold expenses are 1.5 lks. My question is: Should/can I retire and not work or should I look for job? I can work on a salary of 2-3 laks per month should I try hard enough. My wish: To retire and not work for money and spend time with my family. Is it possible? I wish to leave my children an endowment , my son' s education in engg is a cost plus their marriages. Any advice?

Ans: You deserve deep appreciation for the way you have built your financial life. You have reached this stage with good discipline and care. Having zero loans, strong assets, and steady pension shows excellent planning. Your wish to spend quality time with family instead of working for money is heartfelt and genuine. Many people at your stage still struggle for financial freedom, but you are in a very strong position. Still, let’s analyse this carefully from every side before deciding whether you can retire peacefully without stress or should work for a few more years.

» Assessing your overall financial foundation

Your total financial assets are well diversified. You have Rs 2 crore in equity, Rs 1.5 crore in PF and gratuity, and Rs 35 lakhs maturing from LIC in two years. Along with this, you have two residential flats — one generating Rs 14,000 per month and another vacant but with a notional rental value of Rs 45,000.

You also have a confirmed pension of Rs 1.2 lakh per month and lifetime health benefits. That is an excellent safety net. Your household expense is around Rs 1.5 lakh per month, which is quite reasonable for your income level and lifestyle.

The question is not only whether you can retire but whether you should retire completely right now. The answer depends on a few important aspects — cash flow, inflation, long-term sustainability, and your personal goals for your children.

» Understanding your retirement readiness

Retirement readiness is not only about having assets but ensuring sustainable income throughout life. You are likely to live another 30 years or more after retirement. That means your portfolio should support you until around age 82 or even longer.

Your monthly pension of Rs 1.2 lakh already covers around 80% of your current expenses. This is a strong start. Your rental income from one property adds Rs 14,000, taking the total monthly inflow to Rs 1.34 lakh. There is a small shortfall of about Rs 15,000–20,000 per month for household expenses.

This gap can easily be covered from your investments, which makes your financial foundation quite safe. However, inflation will gradually increase expenses. Over time, your monthly needs may rise faster than pension growth. So, your investment strategy must protect your purchasing power for 25–30 years.

» Evaluating income sources after retirement

You will have four income pillars after retirement:

– Monthly pension of Rs 1.2 lakh (inflation-protected partially)
– Rental income of Rs 14,000 (can increase slightly over years)
– Maturity from LIC of Rs 35 lakhs after 2 years
– Growth and withdrawal from PF and equity corpus

Together, these sources can provide stable income and long-term growth if managed properly.

However, relying completely on pension and rent will not be enough in the long term. You will need systematic withdrawals from your investment corpus. Hence, you should plan your asset allocation carefully before retirement.

» Assessing your expenses realistically

Your current household expense is Rs 1.5 lakh per month. But once you retire, you may spend more on travel, medical, or lifestyle activities. At the same time, children’s education and marriages will bring short-term spikes in expenses.

Hence, it is better to assume that your monthly requirement may touch around Rs 1.8–2 lakhs in the coming years. That would mean an annual expense of around Rs 22–24 lakhs. Your pension covers about Rs 14–15 lakhs annually, leaving a gap of Rs 8–10 lakhs to be funded from investments.

This gap can comfortably be filled from your PF and equity corpus if managed wisely.

» Importance of liquidity and investment segmentation

At this stage, not all investments should remain in one type of asset. You need to divide your portfolio into three parts:

– Short-term liquidity: 2–3 years of expenses in short-term debt funds or fixed deposits.
– Medium-term corpus: 5–10 years need in balanced or hybrid funds for stability and moderate growth.
– Long-term growth: remaining equity corpus for wealth protection and beating inflation.

This segmentation ensures that you never withdraw from equity during market dips. It also keeps your retirement income smooth and predictable.

A Certified Financial Planner can help you create a withdrawal plan with regular rebalancing every year.

» Assessing the role of your PF and gratuity

Your PF and gratuity of Rs 1.5 crore will be received in 2 years. This is a risk-free component of your portfolio. You can keep a part in senior citizen savings instruments for regular interest. Another portion can be moved to short-term debt funds for flexibility.

But don’t lock everything in fixed options. They may not beat inflation over long periods. Keep some portion allocated to growth assets for better balance.

Your PF corpus is like your income stabilizer — it gives you peace of mind and regular interest. But its real value may reduce over decades due to inflation.

» Handling the LIC maturity

You have Rs 35 lakhs in LIC maturing around your retirement year. After receiving it, you should avoid reinvesting in similar insurance-based products. They offer very low post-tax returns and limited flexibility.

Instead, the matured amount can be used to create an income-generating portfolio through mutual fund systematic withdrawal plans. These can give you higher inflation-adjusted returns and liquidity.

Your insurance need after retirement is minimal since your children are almost independent and you already have sufficient assets. So, this LIC maturity should be treated as an investment resource, not as insurance continuation.

» Evaluating the rental properties

You own two flats — one rented and one vacant. The rental income of Rs 14,000 is modest, and the second property’s notional rent is Rs 45,000. If it is not in use and you do not plan to move there, you can consider renting it out too.

That additional rent of around Rs 40,000 per month will increase your passive income substantially. You can use it to fund your monthly expenses or reinvest it systematically.

Even if property values don’t rise much, regular rent creates stable cash flow, which supports your retirement lifestyle. However, do not depend fully on real estate. It is not liquid and cannot be sold quickly during emergencies. Keep it only as a secondary support.

» Planning for children’s education and marriage

Your son’s engineering education and your daughter’s marriage will need large lumpsum amounts in the next 5–8 years. These should come from specific earmarked portions of your corpus.

You can set aside around Rs 50–60 lakhs from your investments for these goals. Keep them in low-risk or hybrid investments to avoid market volatility. This ensures the money is available when needed without disturbing your retirement income flow.

Never use your pension for these one-time expenses. That income should only support your monthly lifestyle.

» Managing inflation risk

Inflation is the silent challenge in retirement planning. Even at 6–7% annual inflation, your expenses may double in 10–12 years. So, your pension and fixed income sources will not be enough later.

This is why maintaining equity exposure is crucial even after retirement. Your Rs 2 crore equity corpus should not be withdrawn fully. You can withdraw systematically but keep a portion invested for long-term growth.

This will protect your purchasing power and allow your overall wealth to grow faster than inflation.

» Evaluating psychological and emotional comfort

Many people underestimate the psychological side of retirement. After decades of work, the sudden stop can feel strange. But you already have a positive vision — to spend time with family and live peacefully. That is beautiful.

If your financial base is strong enough to support that lifestyle, you don’t need to force yourself to work only for money. However, staying mentally and socially active remains important. You can explore part-time consulting, mentoring, or volunteering. It keeps your mind engaged and provides a sense of purpose without the pressure of earning.

Work should become a choice, not a compulsion.

» Considering working for a few more years

Even though your finances are strong, working for another 2–3 years can make a big difference.

– It will allow your corpus to grow further.
– You can accumulate extra savings from your salary.
– Your children’s education and marriage needs can be funded easily.
– It reduces the withdrawal pressure on your retirement corpus.

So, if you enjoy your work and it doesn’t cause stress, continuing for 2–3 more years will give extra security. After that, you can retire completely with greater confidence.

If you prefer early retirement now, you can still do it safely, provided you plan your withdrawals well.

» Importance of reviewing and rebalancing

Once retired, your portfolio should be reviewed yearly. Inflation, interest rates, and market performance will change over time. Regular rebalancing between equity and debt ensures consistent growth and safety.

Avoid chasing high returns or reacting emotionally to market movements. The goal now is steady income and capital preservation, not aggressive growth.

A Certified Financial Planner can help you create a disciplined withdrawal plan to sustain your corpus through all market cycles.

» Ensuring legacy and estate planning

You mentioned that you wish to leave an endowment for your children. That is a noble goal. You can achieve this by creating a proper will and assigning nominees for each asset.

Instead of gifting assets early, allow your investments to grow under your control. Later, you can create specific earmarked funds for their benefit. This approach ensures both financial discipline and smooth wealth transfer.

If you wish, you can even set up a family trust later to manage assets efficiently and avoid future disputes.

» Health cover and risk protection

You have lifetime health benefits, which is excellent. Still, it is better to have a personal top-up policy for extra coverage. Health costs rise faster than inflation, and having personal protection gives flexibility even outside the employer or pensioner scheme.

Keep some emergency fund in a liquid account to handle medical or household contingencies. Around 12 months of expenses is a safe amount.

» Emotional freedom versus financial safety

Retirement is not just about numbers; it is about peace. You have built a strong foundation, so emotional readiness matters more now. If you feel that continuing work will delay your personal joy, early retirement is justified.

But if you think working 2–3 more years will give greater mental comfort and stronger security, you can choose that path. Both are correct — it depends on your priorities.

Your assets and income clearly show that you can afford to retire soon. With proper cash flow management, you can live comfortably and still fulfil all family responsibilities.

» Finally

You have already achieved financial independence through discipline and patience. Your pension and rental income will take care of your regular needs. Your investments can handle future goals, inflation, and legacy wishes.

You can safely retire when you wish. But continuing for a couple of years more will make your position even stronger and more flexible. Either choice is financially sound. The decision should depend on your emotional comfort, not on money pressure.

Spend this phase with family, travel, hobbies, and self-care. You have earned this freedom through years of hard work. Now, make your retirement not only financially secure but also personally fulfilling.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment