How can I retire with a Rs.1 lakh monthly pension at 50?

Ans: No

Ans: To retire at 55 with a corpus of 10 Cr, you'll likely need to increase your SIP amount and possibly diversify your investments further. Consider consulting with a financial advisor to create a comprehensive plan tailored to your goals, risk tolerance, and investment horizon. They can help you assess your current portfolio, determine the required SIP amount, and make necessary adjustments to increase the likelihood of achieving your retirement target.

Ans: Hi Debasis,

Retirement at 45 is achievable. You have another 12 years before your target of retirement at 45 age and assuming you will stay committed to your current investment plan.
As there is still a long life ahead I hope you will think about what to do post retirement.

Some information is missing so I will make some assumptions and provide my updates and views on your current portfolio
Mutual Funds - 22000 per month investment and assuming average return of 12% will help accumulate nearly 1 Cr
PPF - contributing 1.5 lakhs yearly at 7 % will help accumulate nearly 60 lakhs
ULIP - exact month is not available so assuming 1 lakh for the next 12 years at 9% return (it has a lot of expenses in the initial 5 years) will help accumulate nearly 22 lakhs (see note below for ULIP)
NPS - 50000 per year at 10% returns (depends on asset allocation) will accumulate nearly 25 lakhs

Note on ULIP - ULIPs are life insurance + investment product. They do not give enough Life insurance nor do they give comparable returns like Mutual Funds. They will have high expenses in the initial 5-7 years (typical lock-in period) and its market linked (like mutual funds). The Insurance is not really enough and hence advice is to take separate Life Insurance - Term Life insurance for a good amount which is quite cheap and invest remaining amount into Mutual Funds/NPS - this will give best possible Life insurance cover and investment returns. So if you have completed your lock-in period (check policy document), I recommend close the ULIP and replan as mentioned.
If this ULIP was part of tax plan under 80C, then re-invest in ELSS Mutual funds or NPS for same benefit under 80C, and even the Term plan premium will be considered under 80C - so effectively same amount under 80C but better cover and investments.

The total corpus you will accumulate is approximately 2 Crores and this can definitely help you generate income of 1 lakh per month.
There are many aspects that are not considered in this scenario, do keep the below in mind.
The amount of Health insurance you have, you should have cover of 1 crore for self and family.
The Life insurance you require needs to be assessed/calculated. This depends on your net-worth and financial responsibilities towards your family/dependents. Once this is known, plan to get a Term Plan for the required amount ASAP.
Life expenses need to be calculated considering the inflation applicable for your lifestyle. Will 1 lakh be enough to cover your expenses after 12 years when you retire. Also Inflation will keep increasing and thus initial 1 lakh will soon become much more each year.

I strongly recommend you connect with a Certified Financial Planner for personalized guidance and prepare a plan that will take into consideration all above points and much more to provide you a comprehensive Financial Plan. Benefits will include a more tax efficient plan which will consider your requirements and ensure retirement goals are achieved and if there is a shortfall - what alternatives you need to consider.

Hope this is helpful and all the best for the future.

Regards
Janak Patel
Certified Financial Planner.

Ans: You have set a challenging yet achievable goal of retiring at 40. To determine if this is possible, let's assess your financial situation from multiple angles.

Current Financial Snapshot
Mutual Funds: Rs. 75 lakh
Shares: Rs. 1.25 crore
FD/PPF/NPS/EPF: Rs. 50 lakh
Own House: No Loan (Great financial security)
Total Corpus: Rs. 2.5 crore
Monthly Expense: Rs. 1 lakh (Rs. 12 lakh annually)
Retirement Readiness Assessment
You plan to retire at 40, which means a long retirement period.
Your current annual expenses are Rs. 12 lakh.
Expenses will increase with inflation. A 6% inflation rate will double expenses in 12 years.
You need a growing income source to sustain for at least 50 years post-retirement.
Investment Growth & Sustainability
Equity Investments: Your Rs. 2 crore in mutual funds and shares need to grow consistently.
Debt Investments: Rs. 50 lakh in FD/PPF/NPS/EPF provides stability but may not beat inflation.
Portfolio Diversification: Balance between equity and fixed income is needed.
Withdrawal Strategy: Structured withdrawals to prevent early depletion.
Challenges in Early Retirement
Long Retirement Period: Funding 50+ years without income needs careful planning.
Market Volatility: Equity markets can be unpredictable in the short term.
Healthcare Costs: Medical expenses will rise with age. Adequate health coverage is a must.
Lifestyle Inflation: Expenses may increase with changing needs and aspirations.
Unexpected Costs: Family emergencies, home repairs, and other unplanned expenses.
How to Strengthen Your Retirement Plan?
Increase Investments for the Next Five Years

Your existing corpus is strong but may not be enough for 50+ years.
Invest aggressively in high-growth assets while earning.
Consider increasing monthly SIPs and lump sum investments.
Optimize Asset Allocation

Maintain at least 65% in equity for long-term growth.
Keep 25-30% in debt for stability and liquidity.
Allocate 5-10% in alternative assets for diversification.
Manage Withdrawals Smartly

Avoid withdrawing large sums in the early years.
Use a staggered withdrawal approach from different assets.
Let equity investments compound longer to sustain retirement.
Ensure Strong Health Insurance

Get a Rs. 1 crore family floater health policy.
Consider a critical illness rider for additional security.
Keep an emergency medical fund of Rs. 25 lakh separately.
Plan for Inflation-Proof Income

Systematic Withdrawal Plan (SWP) in mutual funds can generate regular income.
Fixed-income instruments should be used for stability, not primary income.
Should You Consider Partial Retirement?
Full retirement at 40 is possible but may bring financial stress later.
Consider working part-time or starting a low-stress business.
Passive income sources can reduce the burden on your investments.
Final Insights
Your goal is ambitious but achievable with a well-planned strategy.
Increase investments for the next five years to build a stronger corpus.
Focus on sustainable withdrawal strategies to avoid depletion.
Ensure strong health coverage and emergency funds.
Consider part-time work or passive income to ease financial pressure.
Planning for early retirement requires continuous assessment and adjustments. Stay invested, stay disciplined, and keep reviewing your financial plan regularly.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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