Retiring Wealthy is the most desired aspects of Retirement Planning. Thanks to the advances in modern science, the average life expectancy is continuously increasing. Changing trends show that the non-working life of an individual can be longer than his working life. With increasingly stressful life every one wants to retire early but this requires right planning.
For a 25 year old who needs Rs.30000 per month today to run his household would require Rs. 1.28 lacs per month after 25 years if inflation is assumed at 6%. This comes to Rs.15.45 lacs per annum. Now if one assumes to earn 10% return post retirement, he needs Rs.1.55 crores just to meet his monthly household expenses.
Monthly Expense: Rs. 30000/- Rate of Inflation:6% No of yrs for retirement: 25 Future Value:Rs. 1.28 lacs
You need to plan for retirement because:
* Traditional avenue of savings are not sufficient to meet retirement expenses.
* Rising cost of living.
* With higher life expectancy you need to provide for around 30 years of your retired life.
* Not all of us are covered under pension schemes.
* No social security system in India like in the USA.
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