The length of one’s life is unpredictable, making it difficult to anticipate how long the retirement lasts. In some cases, post-retirement age may exceed the number of working years. This highlights the importance of planning for retirement. Retirement planning is an art and science. Moreover this is one financial objective for which no loan is available.

Moreover the impact of inflation during retired life is significant. If current monthly expenses are Rs 1,00,000  (considering a 10% inflation rate) after 5 years, you would need Rs 161,051 to maintain the same standard of living. Imagine the effect inflation will have in the next 20-25 years. Expenses such as telephone, travel, clothing, festivals, and, of course, medical expenses are a cause of big stress during retirement. 

Here’s an easy way to calculate your financial needs:

• Key in your current age
• Key in your expected retirement age
• Key in your current monthly expense
• Key in the inflation rate (suggested:8-9%)
• Key in the returns (suggested:12-15%)

For any assistance feel free to connect with Vridhi at +919891467575