MASTER MIND FINNASSET: The Retirement Challenge

Friday, June 09, 2017

The Retirement Challenge

If you are at 40 are living a lifestyle of INR 50000 per month, chances are that you will think, "there is a long way to go for retirement".

What you may not realise is that times have changed.

While 60 may be retirement age in letter, as far the spirit goes it no longer remains 60.

The retirement age in India is rapidly climbing down owing to a very young median age of the population.

Young and competent people are always available as productive replacement for the older crop of employees.

Hence at 40, your job most likely could be your last one and you may be out of it by 50.

So don't wait till 50 to plan for retirement. That perhaps would be a little too late.

Think of 40 as 50 and start planning for retirement.

At 40, if you have saved about INR 20 lakhs, invest it in an equity or balanced mutual fund and for the next 10 years do an SIP of INR 40,000 per month.

(Both the Lumpsum and SIP amounts should be possible for a reasonably successful person of 40)

INR 20 lakhs Lumpsum and INR 40 K SIP should be able to ensure the same lifestyle of INR 50000 (inflation adjusted), till the age of 80.

Otherwise, if you wake up at 50, and even if you have INR 30 lakhs as savings, you will at max be able to maintain your lifestyle for 8 to 10 years only.

What would you then, between 60 and 80; a period of good 20 years !!

Wake up before you go go to your work today.

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