How to decide the retirement corpus amount?
There are various formulas and calculators available to estimate the amount of money needed for retirement, but one commonly used method is the “Rule of 25.” The Rule of 25 is a simple way to estimate how much money you need to save for retirement. It is calculated by multiplying your current annual income by 25. For example, if your current annual income is INR 10 Lakh, you would need to save INR 2.5 Crore for retirement. 10 Lakh * 25 = 2.5 Crore It’s important to note that this is just a rough estimate and may not be accurate for everyone, as factors such as inflation, life expectancy, and spending habits can greatly affect the amount needed for retirement. Other factors that might affect the calculation are returning from the investments, taxes and other expenses. Disclaimer: It is always best to consult with a financial advisor to determine your specific retirement savings goals and to develop a plan to reach them. They can also help you consider other factors such as Social ...