Dear sir,I am currently 50 years old with monthly expenses of Rs 2.60 kacs,how much corpus should I have when I retire at 58 years to sustain my current lifestyle?

Ans: To determine the corpus required for a peaceful retirement, several factors need to be considered, including your current age, monthly expenses, life expectancy, inflation rate, expected returns, and desired retirement age.

Current Age - 49.5 years
Expected Retirement Age - 60 years
Life Expectancy - 80 years
Current Expenses - Rs. 25,80,000 p.a.
Value of current expenses at the time of requirement (Inflation Rate - 6%) - Rs. 9,67,83,692
Amount Required to be invested today to meet the expenses - Rs. 3,37,68,407 (Expected rate of return - 10%)

Based on the given assumptions, with an inflation rate of 6%, you would need a corpus of approximately Rs 3.4 Crores to retire comfortably and maintain your current lifestyle. This amount would be sufficient to cover your annual expenses throughout your retirement years, taking into account inflation and expected returns.

The returns expectations may vary depending upon the equity:debt allocation determined on the basis of risk profile and other related parameters.

Ans: To plan for retirement at 58 with a life expectancy of 100, considering your son's education and marriage expenses, as well as old-age medical costs, you would need a substantial corpus. A Certified Financial Planner can help calculate the exact amount based on various factors like inflation, expected returns, and lifestyle requirements. It's crucial to start investing strategically to achieve this goal, possibly through a mix of equity, debt, and other investment avenues. Regularly reviewing and adjusting your plan will ensure you stay on track to meet your retirement objectives.

Ans: To secure a comfortable retirement with a corpus that can sustain you till the age of 100, several considerations come into play. At 50, with monthly expenses of Rs 2.60 lakhs, targeting a retirement age of 58, the goal is to ensure your corpus lasts 42 post-retirement years.

Given life expectancy and potential healthcare costs, it's wise to plan for a longer retirement. As expenses tend to change, you might see some reductions in post-retirement years, like commuting costs. However, healthcare and leisure expenses may rise.

To build a corpus that can generate a monthly income of Rs 2.60 lakhs (adjusted for inflation) for 42 years, the corpus needed can be substantial. It's essential to have a diversified investment strategy with a mix of equity, debt, and other investment avenues to beat inflation and generate steady income.

Given these factors, starting a systematic investment plan (SIP) tailored to your risk appetite and consulting a financial advisor can help create a realistic and robust retirement plan.

Ans: Hello;

You should have a minimum corpus of 3.75 Cr which if utilised to buy an immediate annuity would provide you a monthly payout of 1.31L(post tax) considering 6% annuity rate.

Happy Investing!!