Question 1

How much corpus do I need for retirement in India?

Accepted Answer

A common rule is 25-30 times your annual expenses. If you spend ₹50,000/month (₹6 lakh/year), you need ₹1.5-1.8 crores. This assumes 4% withdrawal rate and accounts for longevity. Higher corpus provides more security against market downturns and longer life.

Question 2

At what age should I start planning for retirement?

Accepted Answer

Start as early as possible, ideally in your 20s or when you start earning. Starting at 25 vs 35 can reduce your required monthly savings by 50% due to compounding. Even if you're in your 40s or 50s, it's not too late - you'll just need to save more aggressively.

Question 3

What is the 4% withdrawal rule?

Accepted Answer

The 4% rule suggests withdrawing 4% of your retirement corpus annually, adjusted for inflation. For ₹1 crore corpus, that's ₹4 lakhs/year or ₹33,000/month initially. Historical data shows this gives you high probability of not outliving your money over 30 years.

Question 4

Should I include real estate in retirement planning?

Accepted Answer

Your primary residence provides shelter but not income unless you do reverse mortgage or sell and downsize. Include only rental properties that generate income in your retirement corpus. Don't rely solely on property - maintain liquid financial assets for flexibility and emergencies.

Question 5

How do I adjust for inflation in retirement planning?

Accepted Answer

Factor 6-7% annual inflation for India. Your ₹50,000 monthly expense today becomes ₹1.6 lakhs after 30 years at 6% inflation. Post-retirement, continue investing in equity (30-40%) to beat inflation and preserve purchasing power throughout retirement.

Question 6

What if I want to retire early (before 60)?

Accepted Answer

Early retirement requires significantly larger corpus because: 1) Shorter accumulation period, 2) Longer drawdown period, 3) No EPF/pension access till 58. If retiring at 45 vs 60, you need almost double the corpus. Plan for 35-40 years of expenses, not 25.

Question 7

Should I rely on EPF and NPS for retirement?

Accepted Answer

EPF and NPS are good foundations but usually insufficient alone. EPF gives 8-8.5% returns, which barely beats inflation. Use them as base, but build additional corpus through mutual funds and equities for comfortable retirement. Target 50-60% of corpus outside EPF/NPS.

Question 8

How much healthcare cost should I plan for?

Accepted Answer

Healthcare costs rise 10-15% annually in India. Budget ₹5-10 lakhs for comprehensive health insurance. Keep separate emergency fund of ₹10-20 lakhs for medical expenses beyond insurance. Critical illness and super top-up policies are essential for post-retirement healthcare security.

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