Retirement Planning“Goodbye Tension…
Happy Pension…”
Manish P.
Why we need to plan ?
Its risky to die early, but its more riskier to live long.
People change the basic principal
EARN – SAVE = SPEND
and now……
Life is not easy …
EARN – SPEND - EMI = ???
Life is not easy …
Don’t confuse with
“Spending for Life”
Or
“Life for Spending”
What Come First ? Plan for Child Education
Plan for Child Higher Education
Buying a new house property
Foreign Tour
Plan for Child Marriage
Retirement Planning
What comes First ?
Why we need to plan for Retirement ? Generation Gap
Changes in Life Style
Increasing Inflation – The new Demon
Increase of Medical Expenses
Absence Social Security System
Generation Gap
Absence of Joint Families and Business
Less Dependency
Parents support us and we support parents
Diminishing value of culture and respect
My dad had one pair of shoes and used it
for five years. I have five pair of shoes and
use it for one year.
In today’s wired world people connect less
emotionally more electronically.
High stress level.
Ever changing Lifestyle…
Inflation
If you have expenses TODAY
Rs. 1,00,000/-
Per month
The value after 35 years…..(with Inflation of 8%)
Inflation
Rs. 14. 78 Lacs
Per month
Rs. 1.77 Crore p.a.(Just to maintain the same Life Style)
Increase in Medical Expenses
Name of Treatment Cost TODAYCost after 15
yearsCost after 30
years
Dr. Fee for Check-up 1,000 3,172 10,063
Heart Surgery 3,00,000 9,51,651 30,18,797
Lever Transplant 33,00,000 104,68,158 332,06,768
Orthopedic Surgery 3,00,000 9,51,651 30,18,797
Catract Surgery 75,000 2,37,913 7,54,699
Open Heart Surgery 5,00,000 15,86,085 50,31,328
Spin Surgery 3,00,000 9,51,651 30,18,797 Inflation 8%
Retirement Corpus
A Corpus you need to build in
your accumulation phase (30
years to 65 years) so that you
enjoy your distribution phase
(After 65 years till you live).
How to create and how much is enough ? It’s a very difficult task to find out the magic number. We need to
consider the followings aspects to find out the same:
Expenses which will come after Retirement (Ex. Medical Expenses,
Gifts etc.)
Expenses which will not be there after Retirement (Ex. Loan EMI,
Child Education)
Provision for High Medical Emergiencies
Number of dependent and Inflation
Find the Magic Number…
Lets understand it with an
Example.
Meet Mr. Rajesh (Age 35).
He has a myth that “My PF
and all my pension plans are
enough to take care of my
retirement.”
Find the Magic Number…
Facts:
1. Monthly Expenses (Other then loan EMI) – Rs. 1 lac per month.
2. Food Inflation – 8%
3. Age of Retirement – 65 years
4. Savings till now for Retirement -
1. PF Account Balance – 5 Lacs ( Invest 2,50,000/- p.a.)
2. PPF Account – 3 Lacs (Invest 1,00,000/- p.a.)
Find the Magic Number…
Calculate:
1. Monthly Expenses at the age of 65 years – Rs. 10 Lacs per month
2. Annual Expenses (65 years) – Rs. 1.20 crore.
We need to create a corpus at the age of 65 which can give you monthly income
of Rs. 10 lacs per month (tax free).
If we assume 4% tax free rate of return, then we need a corpus……
Retirement Corpus to meet monthly expenses
30,00,00,000
30 CRORE
Retirement Corpus
Corpus we need for monthly expenses – Rs. 30 crores
Increase:
Provision for Medical Emergencies
Present – 10 lacs
A the age of 65 years – Rs. 1 Crore.
Retirement Corpus - Planning
IF YOU DIE EARLY
A good and decent Term Plan to
cater your needs.
IF YOU DON’T DIE EARLY
Discipline approach towards
investment.
Future is always unpredictable …We never know what come
next. So always be cautious
and updates about latest
happenings…
Final Note…
Plan Today for Better Tomorrow.
The best age to start for your
retirement is either 20 or NOW
Stick to basic, basic is always beautiful.
Always educate your kids about our
inheritance values, cultures and roots.
Don’t forget to prepare your WILL.
Donate and Educate..
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