Rs 1 Lakh Monthly Income Post Retirement: Corpus Required And How To Create It

Making your retirement peaceful depends on a well-planned strategy and self-discipline in saving. For those looking to get Rs 1 lakh per month after retirement, it is important to know the corpus needed and how to accumulate it. Getting started early and investing wisely can make it achievable.

Inflation should be taken into consideration, as the worth of Rs 1 lakh today would be quite less in 20 to 30 years. Thus, inflation is a huge consideration while planning for a monthly retirement income of Rs 1 lakh.

For example, if your expenditure is Rs 1 lakh today and you expect to retire after 20 years, with an assumption of 6% inflation every year, you would need around Rs 3.2 lakh per month to live the same life.

Likewise, if your expenditure is Rs 30,000 now, you would be needing around Rs 1 lakh per month after 20 years.

To accurately estimate your corpus, make reasonable assumptions for the inflation rate and plan for life expectancy conservatively, till about 85 years, to ensure your retirement funds last.

According to a report in The Economic Times, if you are retiring at the age of 60 and wish to replace your present income of Rs 1 lakh per month, or Rs 12 lakh a year, for the next 25 years, with a life expectancy of 85 years, you will have to arrive at the required corpus after careful calculation.

Using an online calculator, with a conservative post-retirement return of 6% per annum and accounting for 5% inflation, the estimated corpus comes to around Rs 2.5 crore. This amount would generate Rs 1 lakh per month, adjusted annually for inflation, over 25 years.

Building a retirement corpus large enough can be done by beginning early and saving regularly, so your money grows through compounding. Diversification among equities, debt and annuities can give a mix of long-term growth and stability, and SIPs in mutual funds ensure discipline.

Using tax-advantaged accounts such as the National Pension System (NPS) and Public Provident Fund (PPF) can further boost your savings.

Finally, you should periodically review and rebalance your portfolio in order to ensure that it remains in sync with your retirement objectives.