My name is Ravi. I’m 25 years old. I’m married had having a child. I’m working in a Pvt Ltd Co. I’d like to save money for after retirement life. At present my monthly expenses comes around Rs.12000/- p.m. I can save Rs.3000/- p.m. I intend to retire at the age of 60 years. I need your suggestion for how much I would need for retirement and where can I invest to achieve it?
Ravi from Chennai
You’re having 35 years to accumulate money for your after retirement life. If you maintain the same standard of living even after retirement, you may need about Rs.1,20,000 (assuming with the inflation of 8% every year). You may need about Rs.2 Crores which may earn 8% of interest as deposited in a Fixed Income Instrument like FD, you will get Rs. 1,30,000/- as income for every month.
As you said to save Rs.3000/- p.m., you need to invest it in Investments which can earn about 12% annualized return for 35 years. At the end of the investment period, you can get Rs.2 crores and you can invest it in FD and earn for your monthly income after retirement. We suggest you to invest in Mutual Funds (we have sent you an email regarding which schemes to invest) to achieve the 12% return.