Many readers want to know how much money is needed for retirement and whether there is any effective way to know the correct amount.
You can only estimate the retirement amount, as inflation will continue to increase your living cost.
There is a rule of thumb to determine your retirement corpus.
1) Calculate your current annual expenditure. 2) Add 6% inflation to your annual expenses till retirement. 3) Multiply this amount by the number of years you’ll spend in retirement
(1) Annual expenses = ₹6 lakh (2) Considering 6% inflation, that comes to ₹10.74 lakh (3) If you estimate retirement duration to be 30 years, retirement corpus will be ₹3.44 cr
This amount may seem huge to you, but if you invest regularly and in a disciplined manner, you can achieve this goal.
Even after retirement, keep one-third of your corpus in equities and the remaining in debt for capital preservation.