Rs 50K/Month Income at Retirement: Are you 40 years old and want to retire with Rs 50,000/month income with 4% rise every year? Know how much you need to invest today

Retirement Planning: Retirement Planning: Retirement is an important phase of your life, which may be many decades long. Having a corpus that funds your retirement can provide you mental peace. The preparation of such a corpus should be done when you are earning.

But if you are 40 years old with Rs 50,000 monthly expenses and no retirement corpus, want to retire at 60 years of age, and want money for the next 20 years, what can be your retirement corpus?

Assuming a situation when the inflation rate (or yearly increase in your expenses) is 4 per cent, how much monthly, yearly, or lump sum investment do you require for a 20-year retirement phase?

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See our estimates to know it.

How your expenses rise with time

In the story, we are taking the example of a 40-year-old person with Rs 50,000 monthly, or Rs 6,00,000 yearly expenses. If the expenses are rising by 4 per cent a year, let's see what their expenses will be by 80 years of age.

In the table, you can see that if your monthly expenses are Rs 50,000 at 40 years of age, by the age of 60, they will be Rs 109,556, and by the age of 80, they will be Rs 240,051..

How much corpus you may require

For your 20 years of retirement, the total estimated amount you require is Rs 3,91,48,462.27. But since you will get a return on your invested amount, this amount will be discounted to calculate its value in the first year of your retirement.

Investment return

Since you will invest an amount, other important aspects will be the rate of annualised return pre- and post-retirement.

You may be aggressive in your investment strategy before retirement, but you may need to be conservative with your investments once you retire.

So while you may have a mix of equity and debt investments before retirement, post-retirement, you may be higher on debt allocation and low on equity.

For our story, we are expecting a 12 per cent annualised return pre-retirement and a 7 per cent return post-retirement.

Corpus required at 60 years of age

Rs 3,91,48,462.27 is the value of the corpus at your 80 years of age, but its estimated value at 60 years of age will be Rs 2,03,39,591.05.

Lump sum investment required to achieve Rs 2,03,39,591 corpus

At a 12 per cent annualised return, the estimated one-time investment required to achieve that corpus will be Rs 21,08,539.61.

Yearly investment required to achieve Rs 2,03,39,591 corpus

The estimated yearly investment required to get the same corpus will be Rs 2,52,043.49.

Monthly SIP investment required to achieve Rs 2,03,39,591 corpus

The estimated monthly SIP investment required to achieve this corpus goal will be Rs 22,111.68.

Lump sum, yearly, monthly SIP investment growth table

(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)