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Retirement Planning: Prepare retirement fund with this rule, your old age will pass in comfort..

Shikha Saxena November 18, 2024 08:15 PM

Retirement Planning: Money is considered the strength of old age. If you have a lot of money in old age, then you will never need to depend on anyone nor will you need to beg for financial help from anyone. But to secure old age, you will have to do retirement planning from the days of youth and you will have to calculate how much money you should have after retirement so that your old age can be spent in luxury and comfort. Here know what the financial rule says in this matter.

How much money should one have in old age?

In this case, according to financial expert Deepti Bhargava, the kind of life you are living today and you want there should be no shortage in it even in old age, then you should adopt the rule of 30X, that is, your retirement fund should be at least 30 times your annual expenditure today. For example, if your annual expenditure today is Rs 9,00,000 i.e. every monthly expenditure is Rs 75,000, then according to the 30X rule, a retirement fund of Rs 9,00,000×30= Rs 2,70,00,000 should be collected.

How to collect funds

To collect such a huge amount for old age, you will have to invest in long-term schemes that can give better returns. In today's time, mutual funds are considered to be a very good scheme in terms of returns. You can invest in it through SIP. In SIP, you have to deposit a fixed amount every month. Its average return in the long term is considered to be 12 percent.

How much will you have to invest?

If you are 30 years old and want to collect Rs 2,70,00,000, then you will have to run a SIP of at least Rs 7700 continuously for 30 years. In this case, at the age of 60, you will invest Rs 27,72,000. At the rate of 12 percent, you will get an interest of Rs 2,44,08,336 on it, and by the time you are 60, you will have a total of Rs 2,71,80,336.

On the other hand, if you are 35 years old, then you will have to run a SIP of Rs 14,500 every month for at least 25 years. In 25 years, you will invest a total of Rs 43,50,000, at the rate of 12 percent you will get an interest of Rs 2,31,65,709 on it, and at the age of 60 you will get a total of Rs 2,75,15,709.