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Sagar Anantwar
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SimpliFin • 5m
Do you know how much you need to retire? You might be surprised ... Retirement might seem far away, but do you have a clear idea of how much you actually need to live comfortably after you stop working? Most people underestimate the amount they’ll require, and inflation can quickly erode the value of your savings if you don’t plan ahead. Here’s a quick guide to help you get started: 🔹 Assess Your Expenses Start by calculating your current monthly expenses. Include everything—housing, food, utilities, travel, and even leisure activities. Multiply that by 12 to get your yearly expenses. 🔹 Factor in Inflation Even though the official inflation rate is around 6-7%, if you live in a Tier-1 or Tier-2 cities, your inflation is closer to 10%. This means that your ₹50,000 monthly expense today could be as much as 4x-5x higher in 20-30 years. Use a retirement calculator that factors in higher inflation to get an accurate estimate. 🔹 Calculate Your Retirement Corpus A simple rule of thumb is to multiply your yearly expenses by 25-30 to get a rough estimate of the retirement corpus you need. This allows for a sustainable withdrawal rate during retirement, ensuring your funds last long enough. 🔹 Invest for Growth Savings accounts and fixed deposits won’t cut it. To build a sufficient retirement corpus, you need to invest in growth-oriented assets like mutual funds, equity, gold, and bonds, which offer returns that beat inflation over the long term. 🔹 Start Early, Stay Disciplined The earlier you start, the better. The power of compounding works in your favour if you begin saving and investing now, ensuring that you hit your retirement goals without stress. Are you prepared for retirement? If not, it’s time to get serious about planning for your future. Check out SimpliFin’s "AlphaIQ - Goals Feature" to help you plan and achieve your retirement goals easily! #RetirementPlanning #FinancialFreedom #Investing #WealthBuilding #Simplifin #RetirementGoals
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