Mistakes in Retirement Planning

While planning for retirement, there are certain mistakes which we generally tend to make;

Planning for Retirement

Retirement ------At 6% inflation, expenses will almost double in 12 yrs.

Save 35% of your monthly salary. OR Atleast upto 10% of your monthly salary.

Take into account 6% to 7% inflation while planning your retirement corpus.

Let's be prepared to face the future financially.

Let's plan for tomorrow....today!

Plan for a happy retirement life

Depending on others after retirement can be dangerous.

Plan for a happy retirement with LIC.

Get lump sum 10 lakhs +2 lakhs per annum for lifetime from age 55+Lifetime risk cover from LIC by investing just Rs.162 per day

Retirement Planning

I wish I had planned for my retirement is the most unfortunate statement a person can make in his life.
Is your Retirement Plan Inflation Proof?------How much money is needed?


While earning, you must save say atleast 35% of your monthly salary. If not 35%, alteast try to save 10% of your monthly salary.


Inflation of atleast 6% to 7% must be taken into account while deciding how much retirement corpus you would require.
Retirement is not a vacation. Neither is it a destination or a stopping point. It is just a completely different way of life than the 9 to 5 routine.

A transition is a more apt way to describe it, one that requires planning and adjustment.


What you have to figure out is the lifestyle you plan to lead. Someone might just want a car, you might want a Mercedes Benz. You might still want to purchase branded clothes and eat in posh restaurants. In that case, ensure your savings plan accommodates for such a lifestyle.


Take some time to map out what your expenses may be in retirement, and to make sure you're accumulating enough to support them.


Retirement planning requires a clear-eyed analysis of future needs and income.


During retirement, it is important to have money to support yourself & your spouse for basic and lifestyle maintenance. With increasing age, the medical & nursing costs will be high. Hence a significant budget should be allocated for these factors.


You need to financially prepare from today itself. Today you are having an income but after retirement regular income stops and you will have to depend only on your savings.


Start planning today itself. Don’t delay.

Retirement Planning

Many individuals face difficulty in assessing the right retirement corpus that they will need in their sunset years.

Retirement planning has become an important part of our financial goals like any other goal. However, many individuals face difficulty in assessing the right retirement corpus that they will need in their sunset years.

There are lot many factors to consider like debts will be paid off, some routine expenses would end but medical, healthcare costs would increase. Also, the life span of an individual also affects retirement planning.

3 main factors are current expenses, inflation factor and adjusting for life expectancy.

Accordingly, you need to plan for your retirement.

Power of Saving Early

Power of saving early: ------------

The earlier you save, the more money will be accumulated.

This works on the compounding factor as savings for a longer period will earn the equivalent compounding advantage.

Thus, Rs. 2,000 saved today will fetch more returns at the time of retirement, than Rs. 3,000 saved 10 years later.

Obviously, time too holds value, which should be unlocked at the earliest.

It is proved that a three years delay could mean 7% lower returns to the portfolio.

Retirement Planning

Retirement is for everyone. We need to plan it out at an early stage.

Mostly in private organizations, we don't get pension. So you need to have a good savings and invest somewhere wherein you will get a regular flow of income like pension.

Moreover, as age progresses, our health slowly starts giving lots of problem. So dthere is medical cost which needs to be taken care of as age progresses.

Taking all these factors, I personally feel we need to be financially secured in the old age and moreover there is life-longevity.

I personally feel this is a good retirement planning provided you start planning today itself.

For a person of around 32 years, you need to pay a premium of Rs.61,139 every year for 25 years and risk cover starts from Rs.20 Lacs increasing to Rs.48 Lacs,.

From the age of 57 years, you will be getting an amount of Rs.3 Lacs every year thereby increasing by 5% every year till the age of 75 years. You will have insurance cover + you can take loan against your policy after the age of 60 years.

Cost of Delay In Retirement Planning

Proper planning is a key step to success in any task.

Planning for retirement is no exception.

Always remember, if you plan to start on a later date, the date may never arrive, as the reasons for putting off saving for retirement may increase in future with increasing liabilities after marriage such as increase in family members, housing loans and household expenses.

So earlier the better.

Start Planning for Retirement

Start saving early should be the first plan for retirement.

Because if you don't start early, it will be very difficult after 20-25 years to save.

You will have major challenges like family expenses, children education or education abroad, child's marriage etc.

First and foremost for planning your retirement, you need to estimate your lifestyle expenses. Depending on this factor will be your savings.

Start savings at an early age. Assuming you get a job at an early age of 25 with a monthly salary of Rs.30,000 (+) per month, you need to set aside atleast 20% of your monthly income for your savings and the balance can be utilized for other expenses.

With this type of savings, slowly you can create a passive sort of income.

What is Retirement Planning

Retirement is for everyone, all of us have to undergo at some point or the other.

But when it comes to retirement, most of us are not well prepared for it.

For government employees as well as many private sector employees, they have retirement schemes like pension to take care of.


Retirement actually means you will no longer be working with the organization or earning any salary. As a result, you are forced to live with the savings made during the peak of your income earning years. Through savings, you accumulate assets.


Today with the improvement in medical sciences, life span has increased i.e. we are likely to live longer.

A person who retires around 55-60 years is expected to live for another 20 -25 years (or +).

This means that savings has to last for that much period.

So what is the ideal way to combat retirement?

Start planning early and save, save, save money.

Retirement Planning Save for Tomorrow

Understanding the Power of Saving

Suppose your age is 40 years and expenses per month are Rs .10,000.  Assuming Inflation rate to be 6%. How much will this 10,000 be after 20 years when you are 60 years old?

Can You Imagine?

At 60, it will be 32,071------Three fold…. of what you are spending 20 years before.

So What Is Inflation!

Inflation is measured in percentage terms and refers to a sustained rise in price of goods and services.

For eg. In 1960’s you could buy a movie ticket for 20 paise and now it is costing you Rs.200.

Gold prices:

In 1960 - Rs.111

In 1970 – Rs. 184

In 1980- Rs. 1,330

In 1990 – Rs. 3,200

In 2000- Rs. 4,400 

And In 2010 – More than Rs. 20,000

That’s the effect of inflation.

So how Much Funds Will be Required in order to take care of your monthly expenses at 60?

You need to start planning from today. You may require around Rs.48,10,650 -.

In order to make Rs.48,10,650,  how much investment needs to be made every year so that you will get an income of 32,071 per month at the age of 60?

Assuming interest at 9%, you ought to make around Rs.93,807 per annum investment.

Assuming that a person makes investment of Rs.100,000 every year at the age of 40 years, he gets an amount of Rs.55,76,500 at 60 years.

100000 -------(Every Year)------------------------55,76,500

(40 Years)--------------------------(60 Years)

Assuming the person does not make an investment at 40 years but makes an investment at 45 years every year (i.e. 5 years later) he gets around Rs.32,00,000 only at 60 years.

Nil------------------100000-----(every year 100,000)-----------32,00,000

(40 Years)------(45 Years)--------------(60 Years)

A person who makes an investment of 1,90,158 (every year) at 45 gets Rs.55,76,500 at 60 years.

----------------------1,90,158-(every year)--------55,76,50
(40  years)-------- -----(45 Years)-----------------(60 Years)

But a person who invests at 41 years (i.e. Rs. 121,010 every year from 41 years) has to invest only Rs.1,21,010 to get Rs.55,76,500 at 60 years.

--NIL ------1,21,010 (every year)-----------55,76,500

(40 Yrs)---(41 Years)-------------------------(60 Years)

This shows that earlier the investment, the better the returns are at maturity.

Save, Save, Save Money should be your motive.

Plan your retirement at an young age and have a peaceful life.

For contact details: venkatesh_iv27@yahoo.com

Inflation and Retirement

With increasing cost, care needs to be taken of inflation. 

Inflation will tend to drain away all your savings. 

Rising prices and rising cost of living will reduce our standard living conditions. 

So savings is very important and it should take care of inflation during our retirement period. When you retire, there is no regular income or any salary income. 

All passive sources of income like retirement funds should give us higher rates of return.

Start Savings at a very Young Age, Decide your lifestyle costs and try creating a passive source of income.

Start Planning for Retirement

I personally feel that it is better to start early or plan early for retirement. It can be very challenging if we do not start early. 

As we age, our savings will slowly start depleting. So when we are in service, we need to actively save the most. 

Atleast 50% of our income should go to savings during our prime age. So start saving from 25 onwards or atleast from 30 years. 

This will help in having enough capital in hand by you reach 60 years of age.

Save and invest wisely. 

What is Retirement

Retirement means that you will not be working or no longer working with the organization with whom who have worked for quite a long time.

On account of retirement, you have to put up with whatever savings you have in hand. The interest earned on your savings will be your income for your retirement period, say from the day when you retire till your existence.

During service, you can accumulate wealth but during retirement, you tend to decumulate this capital.

Today with rapid improvements in medical science, life span is increasing. An average person retires around the age of 55-60 years, they could have another 15-20 years to live. 

This means that their savings should exist till this time. So you need to have funds to manage for another say for atleast 15-20 years post retirement assuming a life span of 75-80 years. 

Start Planning today itself. 

Retirement Comes for Everyone

Today we are living in the age of computer. Things are moving faster. So we need to think faster, act faster and take decisions very quickly. You might be 30 years today but you would not know how fast life is going, with marriage, family etc and tomorrow, it will be time for retirement.

So retirement is not something that happens to only few individuals but to everyone. At some point in life you have to retire and be prepared for it. 

For retirement, you have to have enough funds in hand. If not, start thinking today itself. 

The earlier the better.