How Soon Can You Retire?
Moneycontrol.com | Aug 02, 2007
A common trend these days is retiring early. A standard question I am asked is, "How soon can I retire?"
The following are some of the factors that govern this query:
- Your existing savings and the investment strategy for the same.
- Your proposed level of savings going forward and the investment strategy for the same.
- Estimate of your future lifestyle expenses.
Other factors include rate of inflation, rate of income growth, inheritance, liquidation of surplus assets etc.
Let's take the case of Mr X, and understand exactly how soon he will be in a position to retire.
Current Age: 40 years Retirement Age: 60 years, or as soon as possible Expected life: 80 years Inflation: 7% pa Current Income: Rs 50,000 pm Investment budget going forward: Rs 10-12,000 pm Retirement Income Required: (accounting for inflation & reduction in lifestyle expenses) Rs 75,000 pm, post tax Existing Savings: Rs 10 lakh - earning approximately 12% pa |
Mail this Topic 
A Network Eighteen Venture
Tell us what you think…