By: D. P. Singh
Deputy MD & CBO, SBI Mutual Fund
This cannot be disputed. However, I would like to draw your attention to how the situation is likely to change over time. By mid 2050s, the scales are likely to be tilted and a larger number of our compatriots are likely to be 'senior' than the younger ones.
With the Indian economy going from strength to strength, it is the right time for us to collectively, and individually, think about retirement and our plans around it. For now, let us focus on how it can be handled at an individual level.
The realistic yet humbling calculations
Picture this. You are a 30-year-old individual planning to retire at age 60. At present, you have Rs 50,000 monthly expenses and you have already saved Rs 5 lakh so far. Now, let us assume that the inflation will average around 7% in the future.
In the past 20 years, the Nifty 50 Index has given an annualised return of over 17%. However, another fundamental reality is that past performance cannot be a guarantee for future returns. Hence, for calculations for a critical financial goal like retirement, we have assumed a conservative return of 9% for the returns over the next 30 years. We have also assumed life expectancy of 80 years.
This story is from the August 2023 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2023 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Build And Maintain A Long-Term Portfolio
Building a robust long-term portfolio involves two steps. First, you must decide on your asset allocation-essentially the distribution of your investments across various asset classes such that it aligns with your financial goals and risk tolerance.
Learn The Magic Of Self-Talk
There is perpetual self-talk taking place inside all of us
Health Cover: How Family Floater health insurance plans work to your advantage?
The right amount of health insurance coverage can help you stay on track with your finances and life goals. In the absence of health insurance, one may be forced to delve into current investments, jeopardising ambitions such as children's education and home ownership.
Empowering Women: Understanding Inheritance Rights in India
In the intricate tapestry of India's diverse inheritance landscape, where the threads of religious laws weave a complex pattern, don't entrust your legacy to fate's capricious hand. Instead, wield the brush of certainty by crafting your will.
Protecting Those Who Matter Most: Understanding the Importance of Life Insurance for Our Loved Ones
Mr. Sanjiv Bajaj is the Jt. Chairman & MD, Bajaj Capital, building the platform for the Business leaders of the Financial Services and Advisory sector to exchange their vision, experience, and views on making the right financial decisions.
Unit-Linked Insurance Plans: How to make use of ULIPS to meet long-term goals?
Unit-linked insurance plans, or Ulips, are a good option if you wish to combine life insurance with savings for long-term goals in one financial plan.
Why Should One Consider Investing In A Large Cap Fund?
An investor’s ability to create wealth in the longterm is directly linked to how well they create an all-weather investment portfolio.
Meeting Medical Costs with Health Insurance Plans
A medical emergency can occur at any time and to any person.
Water: The Elixir of Life
If there is magic on the Planet Earth, it is contained in water - Loran Eiseley.
The 100 Crore Wealth Legacy! A Vision
Generating 100 crores from modest investments is feasible with a long-term outlook, though market timing remains elusive.