Monthly Income Calculations: Age 40 and want Rs 1 lakh/month at retirement? Know your monthly SIP and one-time investments to achieve this goal
Retirement Planning: An investor eyeing to achieve a regular income post retirement needs to know their retirement corpus amount if they want to achieve it through an investment. Inflation and investment return can be key factors to determine the corpus and the monthly income they want to get post retirement.
Retirement Planning: Everyone looks for a comfortable retirement life. They want to see themselves bear expenses and not depend on anyone. It gives them a feeling of financial freedom. But everyone looking for a fruitful retirement life should build income sources or make investments during their active service years. If they are looking to generate post-retirement monthly income through investment, they must know the inflation-adjusted estimated corpus, return on their investment(s), and how much amount they need to achieve that financial goal. Here, we take you through the different aspects of retirement planning and know what can be one-time and monthly SIP investments for a 40-year-old who wants to get an inflation-adjusted Rs 1 lakh monthly income at 60 years of age for the next 20, 25, or 30 years (till 80, 85, or 90 years of age).
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Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)
What is retirement planning?

Why is retirement planning important?

The purpose of retirement planning is to achieve or maintain financial freedom in their retirement life. There are chances that one may not receive any pension, financial aid, or help from others for their monetary needs post retirement. In such a situation, they need to have income sources or a corpus so that they don't need to depend on others.
How much amount is required for retirement planning?

How much amount is required for retirement planning?

How can retirement corpus be created?

What can be investments?

It can be a mix of market-linked and non-market-linked investments. While market-linked options can provide growth to the retirement corpus, non-market-linked can provide some safety. However, post retirement, one can invest in fixed income options or can have a little exposure to equity based on their risk appetite.
What should be investment horizon?

Retirement corpus calculations

We will calculate the retirement corpus required for a 40-year-old at the age of 60 for getting an inflation-adjusted Rs 1 lakh a month for the next 20, 25, or 30 years. The annualised return on the investment pre retirement will be 12 per cent, while post retirement, it will be 6 per cent. We will also tell the one-time (lump sum) and SIP investment required to get the Rs 1 lakh monthly income. We are assuming that the person has 0 investments for the retirement planning. The inflation rate will be 6 per cent.
Corpus required to get Rs 1 lakh monthly income from ages 60 to 80

One-time and monthly SIP investments to achieve that target

Corpus required to get Rs 1 lakh monthly income from ages 60 to 85

One-time and monthly SIP investments to achieve that target

Corpus required to get Rs 1 lakh monthly income from ages 60 to 90
