50k per month is 8cr required!

Retirement planning is changing in India. Significantly and surely.

In the earlier generation where most of our parents were in government service, retirement planning was covered by pension provided by the government.. and it was very very sufficient.

The other main factor is the fact that our social structure is changing .. the entire fabric of family system. No longer can parents depend on children to support them during their retirement years.. one can think about it is as being lucky if your son and daughter even send you some money or not ask you for more!

In today's world with the significantly smaller part of the workforce in private service and with no pension cover , and the era of nuclear families and lower support system for old age parent retirement planning needs to be done and should be the primary focus of the generation even before children's education and marriage.

I know it sounds difficult and against our value systems to focus on our needs , but unless you are willing to live hand to mouth in your golden years one must take this seriously.

Here are some calculations which blow our minds. ( money money money special on retirement this week.. a must see for all ).

If one has a monthly spending today at 50k per month at the age of 30 yrs , the capital that one needs to accumulate by the age of 60 to live a comfortable life upto 80 yrs ( not even 90!) Is 7.7 cr!!! This only assumes an infaltion of  7%.

Now the interesting part if below which people need to understand asap... the amount per month required in different type of asset classes

Amount per month    type of asset    returns
15k                               equity                14%
52k                               epf                      8%
77k                               insurance           6%

Imagine the difference in the required amounts .  If one does not invest in the right asset..the impact on savings required per month shoots up exponentially .

So.. plan today for retirement.. no one else will do it for you.
invest in the right asset class..  don't be too conservative.. what your parents did no longer holds good .

Two critical decisions.. critical for you.. make them.. it's simplefinancialsense!

Looking forward for comments