Question 1

What is the retirement corpus in India?

Accepted Answer

Retirement corpus is the total amount of money you need to save to maintain your desired lifestyle after retirement. It accounts for your current expenses, inflation, life expectancy, and expected investment returns.

Question 2

How much retirement corpus do I need in India?

Accepted Answer

The retirement corpus depends on your current monthly expenses, expected inflation rate, number of retirement years, and expected returns. A general rule of thumb is 25-30 times your annual expenses, but this varies based on personal circumstances.

Question 3

What is the 50-30-20 rule in retirement planning?

Accepted Answer

The 50-30-20 rule suggests allocating 50% of post-retirement income to needs, 30% to wants, and 20% to savings/contingencies. However, in retirement, this might shift to 60% needs and 40% discretionary spending.

Question 4

How does inflation affect retirement planning?

Accepted Answer

Inflation reduces your purchasing power over time. If inflation is 6% annually, your current Rs. 50,000 monthly expenses will become Rs. 80,000+ in 10 years. Accounting for inflation is crucial when calculating your retirement corpus.

Question 5

What should be my retirement allocation strategy?

Accepted Answer

A common retirement allocation is the '100 minus age rule' - if you're 60, invest 40% in equities and 60% in fixed income. Another approach is 50-50 equity-debt. Adjust based on your risk tolerance and income needs.

Retirement Planner

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