Retirement Plan 2050

RETIREMENT PLAN - 2050

Majority of us who are currently working or planning to start working have not ever thought of Retirement, have we? Many of you must be thinking as of what’s the need to think of it now? I agree with you, but Planning your Future using you currently available time won’t do any harm. Let me show you a glimpse of your ‘Retirement’.

Suppose you are 25 yrs old and currently your expenses are, say, Rs.  35,000.00 per month or Rs. 4,20,000.00 per annum for a family of two.

Expenses	Estimated Amount (in Rs.) per month
Food	10,000.00
Clothing	2,000.00
Accessories and Toiletries	3,000.00
Sundry (Telephone/Electricity Bills, Fuel etc.)	12,000.00
House Rent	8,000.00
TOTAL	35,000.00

Food Expenses are like around Rs. 10,000.00 pm. For clothing/shopping once half yearly shopping would cost about Rs. 12000-15000, so say Rs 12,000.00 i.e. Rs. 2,000.00 pm. Accessories and Toiletries would be around Rs. 3,000.00 pm. House Rent – Rs. 8,000.00 and Sundry expenses (including Electricity, Telephone, and Travel/Fuel etc.), say, Rs. 12,000.00 pm.

These expenses shall vary person to person. You need to decide how much you need to earn to fulfil you present needs as well as desires. What you expectations are.

35 years down the line, at the age of your retirement, your expenses would definitely reduce in terms of basic requirements like food, fashion, tour and travel etc. but shall rise in respect of Health and Medication. So, at the age of 60, your expenses would be like Rs. 25,500.00 pm or Rs. 3,06,000.00 per annum -

Expenses	Estimated Amount (in Rs.) per month
Food	7,000.00
Clothing	500.00
Accessories and Toiletries	NIL
Sundry (Telephone/Electricity Bills, Fuel etc.)	5,000.00
Health and Medication (Old Age expenses)	5,000.00
House Rent	8,000.00
TOTAL	25,500.00

But these expenses are at the age of 60 in present time. Taking into consideration the current rate of Inflation @ 9% p.a. and compounding you expenses annually at this rate of inflation, your expenses would be around Rs. 6,75,000.00 PER MONTH or Rs. 80,90,000.00 PER ANNUM when you retire.

Wooo! You hadn’t expected this, had you? Spending around 81 lacs per annum when you don’t earn anything. So, how does it feel knowing the truth? Shocked? Even I was. But it is not too late even now.

There’s a famous quote by Zig Ziglar -

“Expect the best. Prepare for the worst. Capitalize on what comes.”

Now, the question is how will you cater the huge expenses at that age when you do not have a regular source of income?

Well, the answer lies with you. You have only three alternatives – 1. Save; 2. Invest; 3. Both. All you have to do is “Take a Decision”

I say “Make your Secondary Source of Income Your Primary Source.”

“Someone's sitting in the shade today because someone planted a tree a long time ago.” - Warren Buffett

- Jatin Arora

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1. Step 1 - How to start?