Sidhi & Associates

The retirement corpus needed depends on your lifestyle, expenses, and inflation. A general rule: If you need ₹50,000/month today, with 6% inflation for 30 years, you'll need ₹2.87 lakhs/month at retirement. For 25 years post-retirement, you need approximately ₹3-4 crores corpus. Use the 25x rule: Annual expenses × 25 = Corpus needed. Higher inflation and longer retirement periods require larger corpus. Our calculator considers inflation, returns, and life expectancy for accurate planning.

START IMMEDIATELY! The power of compounding works best over time. Starting at 25 vs 35 makes a HUGE difference: If you need ₹5Cr at 60, starting at 25 requires ₹15,000/month SIP, but starting at 35 needs ₹35,000/month (assuming 12% returns). Each year delayed increases the monthly investment significantly. Even small amounts in your 20s grow substantially. Ideal age: As soon as you start earning. Minimum: By age 30. Emergency: Even at 40-45, start immediately – late is better than never.

Asset allocation should change with age. AGE-BASED FORMULA: Equity% = 100 - Your Age. Examples: Age 30: 70% equity, 30% debt. Age 50: 50% equity, 50% debt. Post-retirement (60+): 20-30% equity, 70-80% debt. INSTRUMENTS: Equity: Mutual funds, stocks, ELSS. Debt: PPF, EPF, FD, bonds, NPS (conservative). Post-retirement: Senior Citizen Savings Scheme (8.2%), Post Office Monthly Income Scheme, Annuities, Debt funds. Rebalance annually to maintain allocation. Higher equity when young for growth, shift to debt near retirement for stability.

Healthcare is the biggest retirement expense with 8-10% inflation. PLANNING STEPS: 1) HEALTH INSURANCE: Min ₹10-15L family floater + ₹25L super top-up. Buy before 50 for lower premiums. 2) CRITICAL ILLNESS COVER: ₹25-50L separate coverage. 3) MEDICAL CORPUS: Keep 30-40% of retirement corpus for healthcare. 4) EMERGENCY FUND: 2-3 years medical expenses in liquid funds. 5) PREVENTIVE CARE: Regular checkups, healthy lifestyle reduce costs. Calculate: If medical expenses are ₹10L today, they'll be ₹45L in 25 years (8% inflation). Plan accordingly with insurance + corpus.

YES, NPS is excellent for retirement! BENEFITS: 1) TAX SAVINGS: ₹1.5L under 80C + ₹50K extra under 80CCD(1B) = Total ₹2L deduction. Employer contribution also deductible. 2) LOW COST: 0.01% fund management fee. 3) MARKET-LINKED RETURNS: Historically 10-12% in equity option. 4) DISCIPLINED SAVING: Locked till 60 ensures you don't withdraw. DRAWBACKS: 40% must be used for annuity (lower returns), partial liquidity only. IDEAL FOR: Salaried employees wanting tax benefits + retirement corpus. STRATEGY: Invest ₹50K/year in NPS for extra tax benefit, balance in mutual funds for flexibility. Start early for maximum benefit.

The 4% rule states you can withdraw 4% of your retirement corpus annually without depleting it. EXAMPLE: With ₹1 crore corpus, withdraw ₹4 lakhs/year (₹33,333/month) safely. This assumes: 7-8% returns post-retirement, 3-4% inflation, 25-30 year retirement period. WHY IT WORKS: Your corpus continues growing at 7-8%, while you withdraw 4%, leaving 3-4% to beat inflation. INDIAN CONTEXT: With higher returns (8-9% on balanced portfolio) and inflation (6-7%), 4-5% withdrawal is sustainable. CALCULATION: Required corpus = Annual expenses / 0.04. If you need ₹6L/year, you need ₹1.5Cr corpus. Conservative approach: Use 3.5% for longer retirement or conservative returns.

General guideline: Save 15-20% of gross income for retirement. EXAMPLES: Salary ₹50K: Save ₹7,500-10,000/month. Salary ₹1L: Save ₹15,000-20,000/month. Salary ₹2L: Save ₹30,000-40,000/month. START EARLY BENEFIT: Starting at 25 with ₹10K/month = ₹9.5Cr at 60 (12% return). Starting at 35 with ₹10K/month = ₹3.2Cr at 60. To get same ₹9.5Cr starting at 35, need ₹30K/month! INCREASE OVER TIME: Start with 10%, increase by 1-2% annually. Invest salary increments. Use bonus for lump-sum investments. PRIORITY: First max out EPF (automatic 12%), then PPF/NPS (₹2L for tax), then equity mutual funds (balance).

Yes, but requires aggressive planning! REQUIREMENTS: 1) LARGER CORPUS: Need 30-35 years post-retirement vs 20-25 years for normal retirement. 2) HIGHER MONTHLY SAVINGS: 30-40% of income instead of 15-20%. 3) MULTIPLE INCOME STREAMS: Rental income, dividends, part-time work. 4) LOWER EXPENSES: Live below means, no debts. CALCULATION EXAMPLE: Need ₹50K/month, retire at 50, live till 85 = 35 years retirement. Corpus needed: ₹2.5-3 Cr (inflation adjusted). Start at 25, need ₹40K/month SIP. CHALLENGES: No EPF access till 58, NPS till 60, healthcare expensive before 60. STRATEGY: Build 70% target corpus, earn from hobbies/consulting for 10 years. FIRE Movement (Financial Independence, Retire Early) is possible with discipline!

Senior citizens (60+) get multiple tax benefits: 1) HIGHER EXEMPTION: ₹3L basic exemption vs ₹2.5L (Very senior 80+ get ₹5L). 2) SECTION 80TTB: Interest on deposits up to ₹50K tax-free (vs ₹10K for others). 3) SECTION 80D: Health insurance premium up to ₹50K (self) + ₹50K (parents) = ₹1L total deduction. Preventive health checkup: ₹5K. 4) NO TDS: On interest if income below taxable limit. 5) LOWER TAX RATES: Rebate u/s 87A if income < ₹7L. 6) CAPITAL GAINS: LTCG on equity ₹1L tax-free. 7) INVESTMENTS: Senior Citizen Savings Scheme, PMVVY offer 7.5-8.2% with tax benefits. Result: Can have ₹5-6L income tax-free with proper planning!

IDEALLY YES! Being debt-free at retirement is crucial. BENEFITS: 1) Reduces monthly expenses significantly. 2) Mental peace – no EMI stress. 3) Own house provides security. 4) Can downsize/rent if needed for extra income. STRATEGY: 1) Target finishing loan by 55-58, not 60+. 2) Make partial prepayments from bonus/increments. 3) Increase EMI by 5-10% annually. 4) Refinance if getting lower rates. EXCEPTION: If loan interest < investment returns. Example: 7% loan vs 12% equity returns = invest instead of prepay. CALCULATION: ₹50L loan at 8% for 20 years = ₹41.8L interest. Finishing 5 years early saves ₹15L+ interest. Balance approach: 50% towards loan prepayment, 50% towards investments in your 50s.