Retirement Calculator: 40 years old, monthly expenses Rs 50,000; which should be retirement and monthly investment company
Retirement Calculator: What will be your retirement age? What will your monthly expenses be after retirement? What should your retirement corpus be? What should be the way to achieve that? These are key questions to ask yourself when planning for retirement.
Retirement age is the stage at which your daily expenses can be covered by your passive income.
The monthly expenses can be measured according to the current lifestyle.
The retirement corpus should be big enough to cover your expenses for the rest of your life.
It can be achieved through investment, rental income, creating sources of income, etc.
The basic rule is that your retirement corpus in financial terms should be large enough that even if you get 5 percent annual returns on it, you can cover the expenses for the rest of your life.
In this write-up, we are planning a retirement corpus for a 40-year-old person, whose monthly expenses are Rs 50,000, with a current accumulated corpus of Rs 10 lakh.
Also know what should be the monthly SIP investment for such a person.
Accounting conditions
Apart from the above-mentioned conditions, we assume that the retirement age for a 40-year-old is 60 years, and the life expectancy is 80 years.
They have no debt or financial requirement for child’s education or marriage when they are of retirement age.
One will get 10% annual return on retirement-related investments, and the annual growth of the retirement corpus after retirement will be 5 percent.
A person’s lifestyle will remain the same at the age of 60.
Inflation will increase by 6 percent.
For such a person, the limited retirement corpus required for 60 will be Rs 4,21,74,937.
I annual estimated cost for such a person it will be Rs 19,24,281 in 60.
They need R45,889 monthly SIP investment to achieve that goal.
With that monthly investmenti total amount invested in 20 years it will be Rs 1,10,13,419.
At 10 percent annual return, i the expected value of this investment will be Rs 3,11,61,518.
Retirement calculation formula
FV = PV (1+r)n
The variable in the formula is
FV- Future Value
PV- Present Value
r- expected inflation
n- time remaining until retirement (retirement age – current age)
(Disclaimer: Our calculations are based on guesswork: This is not investment advice. Exercise caution or consult a professional for retirement planning.)
