Can I retire at 48 with a corpus of 2.5 crores invested in equity and PF and a monthly expense of Rs 1.2 lakh?

Hi, I am sitting on a corpus of 2.5 cr invested in equity and PF. My monthly expense is close to 1.2 lac per month. My age is 48. Apart from my daughter’s marriage there is no liability on me. Is this enough to retire at the current month

Ans: Hello;
Your monthly expenses 1.2 L today will be 2.15 L, 10 years hence and
3.85 L, 20 years from now. This is just considering modest inflation of 6%.

Assuming life expectancy of 75 years, you need reasonable corpus to support you and your spouse for 27 years to meet your expenses.

You may cover healthcare costs through adequate mediclaim insurance but cost of other things will need to be borne by you.

I am presuming you have made separate provision for daughter's marriage.

My suggestion is you may invest your corpus of 2.5 Cr in an equity savings type of mutual fund which has low to moderate risk and let it grow for 7 years. Considering modest return of 9% your corpus will grow into a sum of 4.57 Cr.

While you may continue to work for more 7 years to cover expenses.

This benefits both ways, corpus to finance retirement rises and quantum of number of years in retirement reduces. (This is just from retirement planning perspective. May you be blessed with a long and healthy life).

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: You have done quite a few things right.

Let’s now assess your goal of retiring by 2032 from every possible angle. The response below is written in a very simple tone, with short sentences, but deep analysis — exactly as requested.

Family Setup and Retirement Goal
You are 43 years old now.

Your spouse is 42 years old.

You have a 13-year-old daughter.

You live with parents aged 77 and 73.

You both want to retire at 50.

This means you have 7 years to retirement.

You want to build a retirement corpus of Rs 2.50 Cr.

You expect this amount to last for 30 years.

That means, till the age of 80.

Current Financial Position
Your existing corpus is Rs 1.10 Cr.

This includes EPF, PPF, LIC, mutual funds, stocks, jewellery.

You have Rs 13 lakhs invested separately for your daughter.

This Rs 13 lakhs is not part of your Rs 1.10 Cr corpus.

You have medical insurance for yourself and your spouse.

Your parents are covered under employer-provided mediclaim.

You also have term insurance.

This is a good base. Very thoughtful planning.

Monthly Expenses Analysis
Your monthly family expenses are Rs 1.20 lakhs.

This equals Rs 14.4 lakhs annually.

There is no clarity if this includes taxes and premiums.

Also unclear if it includes daughter's education costs.

Let’s break down future impact areas:

Expenses will continue even after retirement.

Inflation will increase the cost of living every year.

Assuming modest inflation, your future needs will be much higher.

After 7 years, Rs 1.20 lakhs monthly may become Rs 2 lakhs.

This is due to inflation.

If retirement corpus is not large enough, you may face shortfall.

Expected Corpus in 2032
You expect the corpus to grow to Rs 2.50 Cr by 2032.

That means your existing Rs 1.10 Cr should grow in 7 years.

You also plan to continue investing till then.

But…

Will Rs 2.50 Cr be enough for 30 years of post-retirement life?

Let’s understand how long Rs 2.50 Cr will last:

If post-retirement expenses start at Rs 2 lakhs per month

That is Rs 24 lakhs per year

Without any investment return, corpus will finish in 10 years

Even with moderate returns, 2.50 Cr will last only 12–14 years

This is a serious gap.

Hence, Rs 2.50 Cr is not enough.

Realistic Retirement Corpus Required
You will need a much bigger corpus.

For Rs 2 lakh per month in retirement,

Over 30 years,

You may need at least Rs 5.5 Cr at retirement.

This is a conservative estimate.

And this assumes:

Moderate return after retirement

Controlled inflation

No major health shocks

No major unplanned expense

If inflation goes higher or returns go lower, you’ll need more.

Retirement Preparedness Assessment
What you have done well:

Built Rs 1.10 Cr corpus already

Started early investments

Have SIPs in mutual funds

Taken term insurance

Bought mediclaim

Separate planning for daughter

What still needs attention:

Final corpus estimate is too low

Monthly expenses are high

No passive income sources shared

LIC portion may be dragging returns

About Your LIC Policy
You mentioned LIC is part of the Rs 1.10 Cr corpus.

Please check if it is a traditional endowment or money-back plan.

If yes:

These policies give very low return.

Often only 4% to 5% yearly.

Not good for wealth creation.

Action Plan:

Consider surrendering the LIC policies.

Reinvest in mutual funds with a CFP-backed MFD.

This will give long-term growth and flexibility.

Only do this if surrender value is fair and term insurance is in place.

Mutual Fund Portfolio
You have Rs 13 lakhs kept aside for daughter.

This is over and above your retirement planning.

Very good planning.

But…

Please ensure this portfolio is actively managed.

Avoid index funds.

Index funds follow the market blindly.

They offer no risk protection.

No fund manager takes active decisions.

Volatility hurts in such products.

Actively managed funds aim for better results.

Also, avoid direct mutual funds.

Direct funds seem cheaper.

But you miss human advice and emotional support.

Behaviour gap reduces returns.

Regular funds through CFP-backed MFD give better outcomes.

You get portfolio reviews and strategy alignment.

That is more valuable than low expense ratio.

Future Action Plan
To make retirement at 50 possible, consider below actions:

Increase investments wherever possible

Reduce expenses slowly over next 3 years

Build one more income source if feasible

Consider working part-time after 50

Avoid loans or lifestyle inflation till retirement

Review insurance every 2 years

Increase SIPs whenever you get salary hikes

Healthcare Considerations
You have mediclaim. That is good.

But review sum insured every 3 years.

Health cost rises faster than inflation.

Ensure super top-up is added

Also, check if critical illness cover is needed

Emergency Corpus and Liquidity
Keep Rs 6–8 lakhs as emergency buffer

This should not be in stocks or MFs

Keep in liquid or short-term instruments

Other Key Points to Consider
Don’t consider jewellery as part of retirement fund

Gold is not easily liquid

Price movements are unpredictable

Don’t count employer mediclaim for parents post-retirement

That will end with your job

Plan a separate cover or buffer

Post-retirement, shift equity MFs slowly to hybrid or conservative

Keep 5 years of expenses in low-risk funds or bank deposits

This will avoid panic during market dips

Estate Planning and Legacy
Create a Will after retirement

Ensure nominations are updated

Keep family informed of assets

Appoint a trustworthy executor

Child’s Education and Marriage
You have started planning

That’s very good

Keep reviewing goals every 2 years

Consider adding child-specific insurance with waiver benefit if budget allows

Finally
You are on a good path.

But retiring in 2032 with Rs 2.50 Cr may not be enough.

You may face shortfall if inflation and returns change.

Target Rs 5.5 Cr corpus minimum by 2032.

This is possible with focused planning and discipline.

Avoid traditional LIC products.

Shift to mutual funds via CFP-guided regular plans.

Avoid index and direct funds.

Review investments every year.

Avoid real estate as investment.

Focus on liquidity, tax-efficiency, and growth.

This will help you and your spouse enjoy a peaceful retirement.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment