Hi sunil sir iam 45 year old i want to retire next year my monthly expense 50000 per month, how much money need to sustain at the age of 80

Ans: To retire with expenses of Rs 2.6 lacs/month till age 100, you'll need approximately 7.8 crores. This calculation assumes inflation, investment returns, and doesn't account for any other income sources or unexpected expenses. Regularly review and adjust your retirement corpus based on changing financial conditions.

Ans: It's great that you're thinking about your retirement and planning ahead. Here are some steps to help you determine how much money you'll need to retire comfortably:

Calculate Your Retirement Expenses: Start by listing down all your current monthly expenses, including essentials like housing, utilities, groceries, healthcare, and discretionary spending. Add an inflation buffer to estimate future expenses.
Determine Your Retirement Age: Decide at what age you want to retire. Since you're 45 now, consider how many years you have until retirement.
Estimate Your Retirement Income: Assess all potential sources of retirement income, such as pensions, annuities, Social Security, and investment income.
Calculate the Gap: Subtract your estimated retirement income from your projected retirement expenses to determine how much additional income you'll need from savings and investments.
Determine Required Corpus: Once you have the annual shortfall in retirement income, multiply it by the number of years you expect to be retired. This will give you an estimate of the total corpus required to cover your retirement expenses.
Adjust for Inflation: Remember to account for inflation when calculating your retirement corpus. Inflation can erode the purchasing power of your savings over time, so it's crucial to plan for it.
Consult a Financial Planner: Consider seeking guidance from a Certified Financial Planner to help you create a personalized retirement plan. A professional can provide valuable insights and recommendations tailored to your financial situation and goals.
By following these steps and consulting with a financial planner, you can determine how much money you'll need to retire comfortably and develop a strategy to achieve your retirement goals. Remember, it's never too late to start planning for retirement, and taking proactive steps now can help secure your financial future.

Ans: Hello;

You need a corpus of 6 Cr to be able to get post-tax monthly income of 2L+. (6% annuity rate considered from an immediate annuity offered by a life insurance company).

You may keep aside 50 L towards marriage expenses and another 20-25 L as emergency fund.

Best wishes;

Ans: You are 37 now. You plan to retire at 60. That gives you 23 years to invest. You are already doing well with a Rs. 45 lakh corpus and Rs. 35K SIP.

Let us now assess how much you may need post-retirement to maintain a comfortable lifestyle.

 

Understanding Your Current Lifestyle
You spend Rs. 55K per month now.

 

That equals Rs. 6.6 lakh per year.

 

Your family includes your wife and 15-year-old son.

 

Your lifestyle may not reduce drastically post-retirement.

 

In fact, medical and personal expenses may go up.

 

So, we must plan inflation-adjusted future needs.

 

You have 23 years until retirement.

 

Inflation may reduce the value of money every year.

 

Assuming average lifestyle inflation, your future needs will increase.

 

Estimating Retirement Corpus Required
With 6% inflation, Rs. 55K/month becomes about Rs. 2.1 lakh/month in 23 years.

 

That means you will need about Rs. 25 lakh annually after retirement.

 

Post-retirement, you may live till 85. That means 25 years of retired life.

 

For 25 years, you’ll need income generation from your corpus.

 

This should beat inflation and also give you a steady income.

 

Therefore, your target corpus should ideally be Rs. 4 crore to Rs. 5 crore.

 

This range considers inflation, life expectancy, healthcare, and travel goals.

 

Evaluating Your Current Position
You have Rs. 45 lakh saved already. That’s a great start.

 

You invest Rs. 35K monthly in mutual funds.

 

You have a stable income of Rs. 90K/month.

 

Your savings rate is 39%. Very impressive.

 

You have disciplined investing behaviour.

 

You are also diversified into gold and stocks.

 

This gives a strong base for compounding.

 

Assuming a balanced risk profile, you can aim for 10-12% annual returns.

 

Over 23 years, your current savings and SIPs can help you reach your target.

 

Suggestions to Maximise Retirement Readiness
Continue Rs. 35K SIP monthly without fail.

 

Gradually increase SIP amount by 5-10% every year.

 

This will match inflation and grow your contribution.

 

Shift equity-heavy funds to moderate risk 5 years before retirement.

 

Ensure you hold diversified mutual funds managed by reputed AMCs.

 

Avoid index funds. They only copy the market.

 

Index funds don’t protect you in falling markets.

 

Actively managed funds aim to beat the market.

 

A skilled fund manager can control downside.

 

Direct mutual funds seem low-cost. But they miss human guidance.

 

A Certified Financial Planner-backed MFD can guide with proper rebalancing.

 

You will need help during market falls.

 

Regular plan through MFD with CFP gives personalised support.

 

Avoid real estate as an investment. It lacks liquidity.

 

Real estate also has tax, maintenance, and legal hassles.

 

Instead, focus on mutual funds, gold, and debt allocation.

 

You can also add PPF and NPS for retirement safety.

 

Allocate 10-15% of savings into gold as a hedge.

 

Ensure your emergency fund is ready for 6-12 months of expenses.

 

Don’t forget health insurance with Rs. 10-25 lakh cover.

 

It will reduce medical pressure post-retirement.

 

Consider term insurance until your child becomes financially stable.

 

You can surrender any LIC or ULIP policies.

 

Reinvest surrender amount into mutual funds for higher growth.

 

Set goal-wise buckets for wealth creation, son’s education, and retirement.

 

Review your plan with a Certified Financial Planner every year.

 

Don’t chase returns. Focus on consistency and time in market.

 

Compounding works best with patience and discipline.

 

Rebalance portfolio once a year. Reduce risk as age increases.

 

Keep your wife involved in your financial planning.

 

Teach your son about basic finance. It’ll help him in future.

 

Income Strategy Post Retirement
Use Systematic Withdrawal Plan (SWP) for monthly income.

 

SWP gives you monthly income from mutual funds.

 

It’s tax-efficient compared to fixed deposits.

 

SWP from equity funds has new tax rules.

 

Long term capital gains above Rs. 1.25 lakh taxed at 12.5%.

 

Short-term gains taxed at 20%.

 

SWP can be created from balanced or multi-cap funds.

 

Mix it with debt funds for safety and lower volatility.

 

Plan 3 income buckets – Immediate, Medium, Long-Term.

 

Immediate (0-5 yrs) – keep low-risk debt and liquid funds.

 

Medium (5-10 yrs) – hold balanced and flexi-cap funds.

 

Long term (10+ yrs) – invest in small and mid-cap funds.

 

This strategy protects capital while providing income.

 

Tax planning must be done smartly to reduce outgo.

 

Withdraw money in tax-smart way from various buckets.

 

You can use HUF account for tax savings if applicable.

 

Steps You Can Take Now
Make a written goal for Rs. 4 to 5 crore retirement corpus.

 

Continue monthly SIP of Rs. 35K. Increase yearly if possible.

 

Keep investing bonus and lump sum into mutual funds.

 

Do not pause SIPs during market falls.

 

Track goal progress every 2-3 years.

 

Match asset allocation as per life stage.

 

Buy health insurance separately for self and wife.

 

Plan your son’s higher education with a separate corpus.

 

Avoid using retirement fund for child’s education.

 

Keep estate planning documents updated.

 

Write a Will. Nominate family across all accounts.

 

Keep records of mutual funds, stocks, insurance in one place.

 

Inform spouse about everything.

 

This reduces family stress in your absence.

 

Treat retirement planning as life goal, not just financial goal.

 

Retirement is your longest holiday. Plan it with joy.

 

Discipline + time + patience = financial freedom.

 

Finally
You are already doing very well. Your monthly investments are strong. Expenses are controlled. Lifestyle is modest and focused.

You need around Rs. 4 to 5 crore corpus. This will help you live comfortably post 60.

You have 23 years. That’s enough time to build this corpus. You must continue with focused discipline. And review your plan regularly with a Certified Financial Planner.

This way, your retirement will be peaceful. And full of freedom.

 

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

Ans: You’re already thinking about retirement at 48. That’s a wise and timely step.
Planning early gives you more control. You can build a worry-free and peaceful retired life.

Below is a complete and in-depth answer, keeping in mind your lifestyle and future needs.

? First Understand the Role of Inflation
– Inflation reduces the value of money every year.
– Rs.50,000 today may not be enough after 10 years.
– Expenses will double roughly in 10–12 years.
– So, you must plan not for today’s cost, but future cost.
– This is the most common mistake in retirement planning.

? Know What You Really Need Monthly After Retirement
– Today your monthly cost is Rs.50,000.
– At 58, it may become Rs.1 lakh or more per month.
– This assumes average inflation of around 7–8%.
– So, plan for future monthly need, not just today’s.
– This helps you stay prepared and stress-free later.

? Work Out Retirement Corpus to Cover Expenses for Life
– You may live till age 85 or even 90.
– So, you need 30+ years of income after retirement.
– Your retirement corpus should generate income for all these years.
– It must beat inflation and yet be safe.
– You must not outlive your money.
– This is the core goal of retirement planning.

? Don’t Depend on EPF or PPF Alone
– These will not be enough on their own.
– Their return is fixed and taxable.
– EPF corpus may last only few years.
– PPF is too small and cannot give monthly income.
– So, you need a bigger, balanced retirement corpus.
– It should combine safety, income, and growth.

? Estimate the Corpus Needed at Retirement
– You may need around Rs.2–3 crore minimum by age 58.
– This depends on expected expenses, lifestyle, health, and inflation.
– If expenses grow faster, you will need more corpus.
– Better to overestimate than underestimate.
– This amount will generate income through Systematic Withdrawal Plan (SWP).

? SWP is Better Than Pension or Annuity
– Don’t go for annuity or pension plans.
– They offer low returns.
– No inflation protection and no flexibility.
– In SWP, you withdraw monthly from mutual fund.
– Your money stays invested and grows.
– You keep full control and ownership of the corpus.

? Stay Away from Index Funds
– Index funds don’t protect in falling markets.
– They just follow the market blindly.
– No professional selection of stocks.
– Active funds offer better research and management.
– They also adjust to market cycles better.
– For long-term needs like retirement, active funds work best.

? Avoid Direct Mutual Funds – Prefer Regular Plans with Guidance
– Direct plans give no support or advice.
– You may choose wrong fund or asset mix.
– Regular plans through Certified Financial Planner-backed MFD is safer.
– You get personalised reviews, rebalancing, and alerts.
– In retirement, peace matters more than tiny cost saving.

? Divide the Retirement Corpus into Two Buckets
– Income Bucket gives monthly income from age 58.
– Growth Bucket grows till you need it later.
– This method protects your future years.
– It also reduces stress on income funds.
– It helps refill the income bucket later.

? How Much Monthly Income Will You Need After Retirement?
– At 58, your Rs.50,000 expense may become Rs.1 lakh.
– After 70, it may rise to Rs.1.5 lakh monthly.
– You must plan to meet these increases.
– Otherwise, your money will fall short too early.
– Plan for rising expenses due to inflation.

? Include Health Insurance in Your Plan
– After 60, medical costs will be high.
– No employer will cover you after retirement.
– Buy a large, family floater plan today.
– Keep increasing sum insured every 2–3 years.
– Don’t depend only on savings for medical cost.

? Don’t Keep All Money in Fixed Deposit
– FD returns are taxable and low.
– FD doesn’t beat inflation.
– Interest may reduce in future.
– Also, no flexibility in withdrawals.
– Instead, use a mix of funds for income and growth.

? Use STP to Move Lumpsum Slowly into Growth Funds
– Don’t invest full amount at once into equity.
– Start with liquid fund.
– Then use Systematic Transfer Plan to shift into equity funds.
– This gives better cost averaging and safety.
– It helps enter the market without worry.

? Avoid Real Estate for Retirement Planning
– Real estate has low rental yield.
– Buying and selling is difficult.
– No monthly income unless tenant is found.
– Maintenance costs are high.
– Better to keep liquid, safe investments for retirement.

? Use Regular Mutual Funds with Active Management
– These are better than index or direct funds.
– You get better service, expert fund management.
– Also, annual reviews and tracking support.
– Good for people who don’t want to monitor daily.
– It also gives family members peace of mind.

? Build Emergency Fund Separately
– Keep Rs.10–15 lakh in liquid funds.
– This should not be part of retirement corpus.
– Use for emergency or medical need.
– This prevents disturbance to retirement investments.

? Involve Family in Planning
– Discuss your retirement plan with spouse.
– Make them aware of investments and documents.
– Name them as nominee or joint holder.
– This avoids confusion in your absence.

? Avoid Insurance-Cum-Investment Plans
– ULIPs or traditional insurance give poor return.
– They lock money and have hidden charges.
– If you have such policies, surrender them.
– Reinvest in mutual funds for better transparency and return.
– Separate insurance and investment always.

? Plan Retirement in Phases
– Phase 1: Age 58 to 70 – active life, travel, hobbies.
– Phase 2: Age 70 to 80 – lower expenses, medical cost rises.
– Phase 3: Age 80+ – mostly health and care cost.
– Design investment accordingly.
– More equity in early phase, more debt later.

? Final Insights
– You are taking the right step now.
– Planning at 48 gives you time to build.
– Start investing monthly in mutual funds.
– Use equity, hybrid, and conservative funds.
– At retirement, use SWP for monthly income.
– Avoid annuity, index funds, direct funds, real estate.
– Choose regular funds with Certified Financial Planner help.
– Build emergency fund and health insurance.
– Review every year. Involve family. Stay disciplined.

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