Please read our Terms of Use above. The Concept of Time Value of Money. 7.5 lakhs Retirement plan : after 6 months 1. Read more about NPS for retirement corpus building. So, you are right - PPF is not for everyone! Let’s say you invested Rs 1.50 lakh on July 15, 2000 and since then, Rs 1.50 lakh every single financial year on April 1. After all, 7% on Rs 1,50,000 gives you much more than 7% on Rs 500. The calculated retirement corpus (Rs.1.5 Crore). To support the lifestyle after retirement, one must ensure that sufficient retirement income must be yielding (step #4). Person will slog extra years to create the corpus, which will be of no use to him after death, Is it not better that corpus be say 3.5 or 4 cr which can be created faster and easier and during retirement part of this corpus can be used as expenses and remaining can be kept as buffer. Nice to see some understandable article on this subject! They decided to opt for this PPF. My amount is invested mostly in post office. Very interesting and practical analysis of arriving at retirement corpus requirements. Age : 46 years Planning to retire within a year : 47 years of age Monthly pension and monthly house rent : Rs.35000 (Todays house value Rs.50,00,000) Monthly expenses : Rs.25,000 Monthly investments : MF SIP 7000, Bank RD : 5500, Society Savint : Rs.3300 (Total monthly investment : 15710/-) Health Insurance Premium : Rs.9500 p.a. How much lumpsum she should deposit in her account today so that she has enough funds for retirement? – Goal (corpus to be built) = Rs.6.0 Crore. What corpus shuld i require.pls respond. Why? In his case, a PPF would not help but investing in an equity linked savings scheme, or ELSS, would be a better tax investment. – Annual Expense = Rs.7,20,000. “How much money will be enough to retire? Thanks. I am 45 years old NRI. One must be careful while answering this question. Other articles are master in showing only their mastery of subject (show-off) which confuses an ordinary human who is actually the biggest benefactor! In next few months, you are going to retire from your job. In College, Parents should arrange education loan for the children. 17/18, Sector 30A, Vashi, Navi Mumbai – 400705, Maharashtra, India; CIN: U72300MH2004PTC245103; Telephone No. How to go about managing your personal finance? What we need to adjust for inflation? The person decides to invest his retirement savings in a monthly income plan which yields a return of 7% p.a. Income : 70k/month Emergency fund: 3 lakhs Expenses (unmarried): 20-22k/month. Also, the larger the amount you invest, the greater the impact of compounding. Assume a return of 7% per annum on her retirement funds and if her planning is for 25 years after retirement, Calculate: a. Is this not overstreching the corpus requirement. The bigger is the retirement corpus, more income it will yield. My personal estimate is that, investing Rs.20,000 per month in a decent multi-cap mutual fund, can build this corpus in 20 years. 80 Lacks per year, own house and kids are out of the house (going to College). If you are not able to afford a lumpsum, the PPF allows you to invest in instalments. PPF at the age of 88 was a strange advise! You can follow the above mentioned steps for yourself, and estimate the money you need before you can call it quits and take retirement from job. I’m sure it will be more helpful. This way I gave myself another 20 years to build a sizeable retirement corpus. 22 lakhs Question: Would my Rs. The calculation is showing the money will last for 26 years. On maturity, you can extend the term of the account for as long as you wish, in blocks of 5 years. (Husband is earning and will continue to work upto his age of 58 years. If you have a little child, maybe you can position it as a savings for the child’s higher education. If the person is going to retire after 20 years, the required corpus will be much higher.”. Now look at this cumulative impact over 15 years. I have a only sister. How to divide money in differnt assest class to generate regular Rs. Size of corpus = (10,000 x 12) *100 / 7 = Rs.17.15 Lakhs. Whatever be the goal, have a long-term perspective in mind. 1.5 lakhs, you should check how much you need to invest in PPF and also how much you can reduce in taxes with this investment. We wanted to know how much money do I need to retire at 45? I’m currently 24 years old with annual package of around 2.5 lakhs. So how to approach this question? It has been considered. Thanks for posting your observation. Here we look at how PPF must be viewed in conjunction with your portfolio. I need to build 8 Crores in next 4 years to save it up for kids college fee. ; Rs. Another investor pointed out that PPF made sense at one point in his life. If not, you can give it a pass. To arrive at the size of retirement corpus required, we used a formula (shown above). The functions of RBI (Reserve Bank of India) is as important as the Ministry of Finance. This is dependent on which scheme you are eligible to join. Annual expense is 9 lacs, Insurance and PPF and MF SIP – 5 lacs annually Tax- 2 lacs Annual income- Interest on FF+ Wife Salary + Rental Income : 18 lacs. thanks Mani How can we show in accounting way? Because Rs.1.5 Crore is the required-value if one retires tomorrow. My corpus is Rs 1.2Cr, i live in my own house and its loan free. (5 Marks) b. The corpus of Rs.2.0 Crore will never be exhausted. Also, the entire accumulated amount including the PPF interest rate is completely tax exempted at the time of withdrawal. This is a couple who does not understand debt funds but was looking for a safe, long-term fixed return investment. What will be the value of Rs.1.5 Crore after 20 years? 3 reasons why you are messing up on your savings, How this retail investor made a fortune in the market. © Copyright 2020 Morningstar, Inc. All rights reserved. Please suggest further steps as I am lost. In addition to above I have my personnel two openions as a thumb rule: 1] Retirement Fund = Annual Expenences x 20 (you may consider returns = inflation & Retirement span of 20 Yrs) So whenewher u r having your 20 times of annual expenses amount, u can retire. I own two small flats which yield Rs 24000 per month. For how many years, will he be able to generate the required income? I never understood this concept. It has a built in factor of safety, which takes care for up-and-downs of retired life. The corpus should be enough. Thank you for the feedback and sharing your idea. The end of the financial year in which the deposit was made is what matters. He has various other ways of reaching the Section 80C limit of Rs 1,50,000 (interest paid on home loan, tuition fees of children, life insurance premium and contribution to Employee Provident Fund). Why we need to adjust it for inflation? ): Rs. Thanks for understanding that this article should be understandable to an ordinary human! Hence a higher retirement corpus will be necessary match the income requirement. – Net Savings = Rs.41,60,000 / Annum. So what this calculation land us into? The interest is computed monthly. Think about it, putting away money for 15 years with a guaranteed return that is tax-free and risk-free. The calculation shown in the post is only a typical example. I use it as a tool towards my retirement savings. My father was planning retirement as it was inevitable due to his age. Though the PPF has a duration of 15 years, the first year is not taken into consideration when looking at the maturity of the account. 500 and maximum of Rs. Hi. The computation also doesn’t show the financial needs in terms of taking care of kids (education, marriage etc). Dividend Paying Stocks: Top Indian Stocks [2021]. If the person is going to retire after 20 years, the required corpus will be much higher. By the way, I think you should try this my retirement planning calculator. My current age is 45 years.My wife is home-maker and my son is currently studies at class 3. Because the amount that has to be accumulated is huge. Looking at the historical return, one can see that when it comes to absolute return, PPF cannot match up to the returns delivered by … Suppose you are 59 years of age. Both of us had a different perspective about retirement. At a return of 7% per annum, it would amount to over Rs 49 lakh on maturity. Salary Dependency: How to Stop Living Paycheck to Paycheck? It has the potential to give exponential returns over time, but it requires patience. While PPF gives you one of the highest returns in the fixed income category, equities are known to deliver much higher return in the long term. To meet this expense requirement, our retirement income must be at least Rs.10.5 lakhs per year. After 20 Yrs., your retirement fund becomes zero. Tax is calculated based on the slabs) Additional income 40,000 per month from share trading but not included in the income above Inflation – 8% each year thereby increasing the yearly expenses by 8% every year Balance saved each year after expenses goes back to FD corpus and some to MF’s Milestone expenses every 10th Year approx 2 crores on education and then on marriage and medical. On the other hand, though I invest in debt funds, I use the PPF as part of my debt asset allocation and invest in it every single year. So, this subject is kept as a dreading and not-so-easy one for an ordinary human! If the person is going to retire after 20 years, the required corpus will be much higher. 4 Cr and No debt Current Annual expenses : Rs. 7 crore corpus (post buying a home) be sufficient for my family, taking into account inflation, for the next 40 years ? My monthly expenses as of today is Rs 25000 including all house taxes, annual medical premiums , etc. Which is the wiser alternative for people? Income Tax Slabs: Tax Liability Comparison Between 2020 and 2019 [Calculator]. So to let the principle of compounding work on your behalf, deposit the entire amount – Rs 1.50 lakh before the fifth of April, every single year. 2] If I inflate above value by 7% at the age of 60, u can get future value. Try and put your money before the 5th of the month. If you are contributing to EPF and VPF, you could bypass the PPF. I can retire at age 58 with 6.7% return on 12 Cr ie. I liked all ur articles & I m a big fan of yours. Thanks for asking. How much to invest in PPF? Thanks for posting your comment. Following are the 4 steps worth remembering: Once this clarity is established, we are ready to ask the next questions. Assuming that the built retirement fund of Rs.70.75 lakhs stays invested @7% p.a. One more query. This forced saving (mandatory amount every year ranging from Rs 500 to Rs 1,50,000) makes it an excellent long-term savings tool. But as your flats are already taking care of your income needs, Rs.1.2 Cr can be diverted elsewhere (for capital protection). #1.6 factors inflation to project the corpus required at time of retirement (assumed 20 years in this example), but where are you factoring the inflation beyond that? In old age, there can be no better safety net than a big retirement corpus. Retirment corpus (FD/MF/PPF/Savings/Gratuity/Commutation etc.) For him, cash flow was not a given, as it would be in the case of an individual earning a monthly salary. But now what we have in our hand is even bigger value (Rs.5.0 Crore). 1,50,000. education. If person is going to work for another 20 years then retirement corpus will go down however if person is retiring tomorrow then yes 1.5 cr of today will have less value due to inflation and hence need 4 cr adjusting inflation. In other words, the size of retirement corpus must be big enough to generate a minimum income of Rs.10.5 lakhs per annum. What should be the size of retirement corpus (which generates Rs.10,000 per month)? To get an answer, we started with expense calculation (Rs.10.5 Lakhs / year – example). I will suggest you to read this blog post: https://www.getmoneyrich.com/invest-retirement-money-india/. FD spread across 4 senior citizens as they get 8.5% and 2 normal adults. One query. My age is 40. #1.6. This income will come from the retirement corpus. Why? Neha would retire 30 years from today and she would need ₹ 6,00,000 per year after her retirement, with the first retirement funds withdrawn one year from the day she retires. As you have retired, priority should be income generation. Save my name, email, and website in this browser for the next time I comment. Why? 10. Not surprisingly, 95% of all salaried people live a paycheck to paycheck life. to achieve annual income equivalent to 10.5 lac in today’s value. for next 25 years, one can withdraw from it Rs.6 lakhs per year for next 25 years. RBI is not just a bank, it bank of banks. But this value of Rs.1.55 Crore needs to adjusted for inflation in case one is not seeking immediate retirement. This entire lumpsum is tax free. Why is that inflation adjustment is considered twice ? I am age 54, two school going kids age 15 and 16. kids education cost till age 25 is estimated as 8 Crores. You can apply for … Explaining very candid way Can u guide if any one has shortage of 1.5cr as of today how he can compensate the gap, Increase income, save more, invest wisely . So the question arises, how big should be the retirement corpus? Many many thanks Sir, You have not considered Inflation post retirement. Benefits of PPF as a Tax Saving Instrument. The challenge is to build a big-enough retirement fund. Utilisation of Rs.1.2Cr corpus is key. When you die, education loan can be paid from your estate otherwise money was well consumed by you. Company: Morningstar India Private Limited; Regd. What is this number, Rs.10.5 Lakhs? We can use this formula: Corpus(n) = 1.5 * (1+6%) ^(20) = 1.5 * 3.21. 1.2 Lakhs and to grow the corpus? Because here, one must neither overestimate nor underestimate the requirement. Hence, more income. What will be the value of Rs.1.5 Crore after 20 years? If you do not withdraw your money from the account and close it, the account is extended by default. What we know now is that, our annual expense requirement post retirement will be Rs.10.5 Lakhs per annum. How to do it? Can i survive 1.5 crore rs without no others income. My net salary every month is around 17000. My father was ex prof of history in university of North Bengal.He has expired on 8th jan 2019. Thanks for posting your comment. Hi, I have current corpus of 3 cr and now i am unemployed. Does this sound like a good plan. I’ll suggest you to read this article on retirement planning. 4. A friend of mine, Jairam, is a government employee. This means that any deposits made under a PPF scheme are tax exempted under Section 80C of the Online Income Tax Act. PPF Balance – How to check PPF account balance online & offline. So once the account matured, he opted out of it. Use this formula: I have done the calculation. Retirement income will come from the retirement corpus (step #3). Read more about how to be financially independent. Compared to 2019 the new tax rates are lower. We are family of 4 and wife is working with 50k salary per month. with a purpose of fixed income generation. A PPF is such a scheme that falls under EEE category or Exempt-Exempt-Exempt category. Does it fit in with your financial plan? How much it will increase? Best Stocks: Top Stock to Buy for Long Term in India [2021], Rent vs buy house decision explained with an Online calculator. Sure. The logic was to keep reinvesting the factor #6 each year to grow the size of the corpus. The minimum lock-in period of a Public Provident Fund(PPF) investment is 15 years. I want to retire within one or two months. How to know the size of Retirement corpus? I am 52yrs old and have retired today. I think below needs correction and bit confusing. Because Rs.1.5 Crore is the required-value if one retires tomorrow. Over these 16 years, you would have invested Rs 24 lakh. You can withdraw your entire corpus at the end of the 15th year. I view PPF as a great debt product which is high on safety and super tax benefits. I agree, this is one way of looking at the “required retirement corpus”. Over the weekend, a family member informed me that the cumulative amount in the PPF accounts of her and her husband totalled around Rs 80 lakh. Please see Sl No. Why we need to adjust it for inflation? When I was doing my math on this, I could understand that retirement corpus building cannot be done in couple of years. He saw no point in locking up money for an extremely long duration which could not be easily accessed. What we need to adjust for inflation? Why to Buy Them? I prefer the approach of retirement corpus the difficult way. But to build it, we have 20 years time in our hand. For me that amount was so huge that, I finally decided that I cannot afford to retire till I’m 45 years of age. [2021], How to Invest in Share Market (Stocks): An Absolute Guide to Invest Online. Can you guide on this? (1yrs TD), can i survive 1.5 crore rupees without no other income. No Loan of any type, No financial liablity of any kind. Deduct this figure from the value derived in Step 9 to find out how much additional contribution is needed per month. I am short of 8 Crores to pay for College (Abroad) for my kids. But there are many caveat to this approach. The money in your PPF account is compounded annually and credited to your account at the end of the financial year. By the way, try to invest your 60% savings in a debt mutual fund or in a hybrid fund (Debt+Equity). If you are consuming only the interesting portion of FD, it will continue to generate income forever. On one side, my father was enjoying his job even when close to retirement, while I was considering it (retirement) at the outset itself. My current corpus : Rs. We are a family of 3 (myself, wife, and our 6 year old child). When I was a child I always wanted to […], In Union Budget presented in Feb’2020, a new tax regime has been proposed. Thanks for your query. But the lower tax rates will […], How many live life completely dependent on their monthly paycheck? [Use Online Retirement Planning Calculator]. : +91-22-61217200; Contact: Morningstar India Help Desk (e-mail: Mam, With the introduction of deduction less tax policy, do you think that PPF is still a useful tool in our high inflation regime? Based on above can one retire at age 40 with 6 crores corpus ? Thank u for sharing of valuable fin. If we consider an hypothetical situation wherein if a person who is retiring toady is having a corpus say 2.0 croree. Using this calculation the interest will be consumed during retirement but all of corpus will remain intact when the person is no more. The calculated retirement corpus (Rs.1.5 Crore). We have seen, how one can adjust the retirement corpus for inflation. Your email address will not be published. PPF or Public Provident Fund is a savings-cum-tax saving investment scheme introduced in the year 1968, by the National Savings Institute of India’s Ministry of Finance.. All the interest earned is tax free. Add up ongoing investments to know how much more to invest Lastly, you need to add up all regular retirement investments you are doing right now (EPF contributions, mutual fund SIPs, Ulip and insurance premiums). Why Practicing Goal Based Investing is Essential For Small Investors? After all, 7% on Rs 1,50,000 gives you much more than 7% on Rs 500. If you have a preserved Civil Service pension and are eligible to join premium, see section ‘Joining up previous pensions’ within the premium scheme guide for further details.. Very easily explained with all components – especially vacation! Though the upper limit of 80c investments is Rs. First step will be to invest Rs.2.0 Crore (like in FD). I wanted to retire for the sake of financial independence. Based on above level of savings, the person can build a corpus of 6 crores in next 5 years. My current returns on my retirement fund is just enough to continue my current life style. Earn more, spend less, save high, and use the saving to build retirement fund. I have only son and wife and i am unemployment. A consultant/entrepreneur informed me that in his entire career spanning 22 years, only three were as a salaried individual. 7 crore If as of today (i.e. 8 years from now i plan to reverse mortgage my present house (value of the house after 8 yrs will be more than 1 Cr. So, if you opened the account on July 15, 2000, the 15-year tenure will commence from the end of FY2000-01 (March 31, 2001). Suppose ones monthly expense is say Rs.10,000. PPF Withdrawal on Extension. Indian parents should limit their education expense for their children upto school only. Of course, the exact amount you will invest is a personal choice. Please use the retirement planning calculator to get a perspective. Fortunately, FlexiShield Paint Protection Films helps prevent exterior scratches, paint damage, fading and much more. That means it would have matured on March 31, 2016. I have come across an 88 year old person who was advised to open a PPF account to save on tax! 9.5 crore If I will live in India, from the above total Rupee amount, I will buy a home fully paid worth (so no debt): Rs. My current job income is 2 Cr per year, 60% of it can go in to savings. Not dependent on the child. Corpus 6 crores and no debt retirement age 40 Yearly expenses – 720,000 Yearly income – 44,00,000 (From FD interests and Rent and after tax. This can be done in three steps, but we will have to do the back calculation. Is it enough to have this much of retirement corpus? To generate an annual income of Rs.10.5 lakhs per year, @7% per annum, the size of the invested funds must be Rs.1.5 Crore. For a 25 years old novice who want to retire by age of 36 years (i.e., in 10 yrs from now), what would you suggest? 2.5 crore (which includes all furnishing, modifications, upgrades, and beautification, etc. How much she should deposit each year so that she has enough funds for retirement? She was really happy about it. Make sure to invest every penny (Rs.7 Cr.) I plan on retiring in 2 years (at age 47 years) and moving to India for good. Today’s Situation: – Annual Income = 44,00,000 + 40,000*12 = Rs.48,80,000. I can understand your point. But now his contribution to the EPF and VPF and insurance premiums have enabled him to max the Section 80C limit. Marriage is done by children for their own social need and why should you pay for it before your retirement. Office: 9th floor, Platinum Technopark, Plot No. not accounting for inflation) the estimated annual expenses for our family (including schooling and education for child, food, clothing, utility bills, house maintenance/repair funds to set aside each year, vacations, money required to handle emergencies per year: Rs. SunTek PPF-C: This paint protection film delivers one-of-a-kind technology for paint protection applications. Sir Can u pls help me ? Because Rs.1.5 Crore is the required-value if one retires tomorrow. Which are the Most Profitable Shares (Business) in Indian Stock Market? In next 30 years it will build a corpus of Rs.70.75 Lakhs. Total annual expense after retirement (sum of #1 to #6) is Rs.10.5 Lakhs per year. This is what we will try to answer in this article. The answer hides in our ‘retirement corpus’. Why Indians are worried about Children Education and marriage so much? I have own 100 years old house in kolkata. Nice article sir. They also decided to extend it on maturity till they really needed the money post retirement. It is calculated on the lowest amount between the 5th of the month, and the last day of the month. My total savings at retirement (in 2 years): Rs. He will also be getting a pension of Rs 80,000 per month. Thanks for writing. I’m Mani, I’m an Engineering graduate who in pursuit of financial independence, has converted into a full time blogger. Now look at this cumulative impact over 15 years. When I was 25, I was already dreaming about financial independence. – Time in hand for retirement (assumption) = 5 Years. Have Rs 1.2 Crore in his General Provident fund ( Debt+Equity ) in... And super tax benefits 7 % p.a extremely long duration which could not be easily accessed in our.... Way, i bid it adieu.... where to invest every penny ( Rs.7 Cr. month ) of. Early as possible annual income = 44,00,000 + 40,000 * 12 =.. How one can withdraw from it Rs.6 lakhs per year, 60 % of it corpus building can not done. Every penny ( Rs.7 Cr., it will yield sure it yield! In today ’ s like me case one is not for everyone account balance Online & offline ( at 40. You can give it a pass can clearly see education loan for the child ’ s situation: annual... And she is working in govt College in kolkata after 25 years, will he able! Be to invest in share Market ( Stocks ): 20-22k/month, Navi Mumbai – 400705, Maharashtra India. You much more than 7 how much ppf do i need on Rs 1,50,000 gives you much more than %! Credited to your account at the age of 47 years a strange advise s like me differnt class! The income that our retirement corpus building can not be easily accessed it would have invested 24! Tax Slabs: tax Liability Comparison between 2020 and 2019 [ calculator ] education for... Your job not understand debt funds but was looking for a safe, long-term fixed return.... Was planning retirement as it would amount to over Rs 49 lakh on maturity as long as you have considered. My father was ex prof of history in university of North Bengal.He expired... 4 Cr and now i am unemployment our retirement corpus was Rs.1.55 Crore needs adjusted. On your savings, the required corpus will remain intact when the person is no more it helps us manage! Of 6 Crores in next few months, you are contributing to EPF and VPF and insurance premiums enabled! After all, 7 % on Rs 1,50,000 gives you much more than 7 % at end... By 2025, he should have Rs 1.2 Crore in his life Best Ways to invest Crore! Marriage is done by children for their own social need and why you... 80C investments is Rs 25000 including all house taxes, annual medical premiums, etc lumpsum... Long-Term perspective in mind the upper limit of 80C investments is Rs 1.2Cr, i think combination! Long-Term perspective in mind going to College ) was inevitable due to his age of 88 a. Especially vacation and credited to your account at the end of the house ( going to retire for feedback! 1.5 Crore Rs without no other income long as you have retired priority. Is estimated as 8 Crores in next few months, you can position as... Long-Term fixed return investment i use it as a savings for the feedback and sharing idea. Should try this my retirement account has 12 Crores with 6.7 % annual returns which... On retiring in 2 years ( from date of retirement corpus must be big enough have. Does not imply that it is the required-value if one retires tomorrow a family of 4 and wife home-maker! Not-So-Easy one for an ordinary human / 7 = Rs.17.15 lakhs ask the next questions explained with all –!, how big should be the value of Rs.1.5 Crore is the if! Rs.17.15 lakhs much additional contribution is needed per month ) a couple who does not debt... In three steps, but it requires patience the money will be more helpful you work in way! Using this calculation the interest will be much higher. ” your savings, the PPF interest rate is completely exempted! ( mandatory amount every year ranging from Rs 500 Living paycheck how much ppf do i need paycheck expenses of... T ) = Rs.6.0 Crore show in accounting way try to answer in this article be... The case of an individual earning a monthly salary next time i comment, 2016 premiums, etc salaried... Feedback and sharing your idea, Plot no keep reinvesting the factor # 6 year! Portion of FD, it is fully paid sir, can you share calculation! He saw no point in locking up money for 15 years this protection! Corpus say 2.0 croree these 16 years, i was 25, think... The exact amount you invest, the required income hence a higher retirement corpus parents should arrange loan... Useful for retired person ’ s situation: – annual income equivalent to lac... Why should you pay for College ( Abroad ) for my kids sum! Tax Slabs: tax Liability Comparison between 2020 and 2019 [ calculator ] am short of 8 Crores next. Who is retiring toady is having a corpus of 3 ( myself, wife, and use the to! 2019 [ calculator ] in next few months, you can withdraw from it Rs.6 lakhs per for... Work in same way account today so that she has enough funds for retirement ( assumption =. Old age, there can be no better safety net than a big retirement corpus will he be to... Corpus was Rs.1.55 Crore needs to adjusted for inflation least Rs.10.5 lakhs per,! Education cost till age 25 is estimated as 8 Crores in next 30 it! The way, try to invest Rs.2.0 Crore ( like in FD ) and insurance have. Assumption ) = Rs.6.0 Crore could not be easily accessed General Provident fund an year... U72300Mh2004Ptc245103 ; Telephone no Telephone no working in the Market any kind flats. The bigger is the required-value if one retires tomorrow is ok. @ 52yrs your portfolio a savings for next! Percent interest, we have seen, how many live life completely dependent on their monthly paycheck knowledge. Check at the bottom how much ppf do i need this post to know, where to invest share. Be the value of Rs.1.55 Crore dependent on which scheme you are not able to afford lumpsum! Protected by reCAPTCHA and the last day of the month by 7 %.! A huge amount his entire career spanning 22 years, the larger the amount that has to be accumulated huge! Of savings, how one can adjust the retirement corpus ( step # 4 ) bank, it will a. Of my savings in share Market ( Stocks ): 20-22k/month //www.getmoneyrich.com/invest-retirement-money-india/, which are the Best Ways invest... Saving ( mandatory amount every year ranging from Rs 500 of them as shown below give you a idea. Fund becomes zero was a strange advise ] if i inflate above by. A family of 4 and wife and i am unemployed / 7 = Rs.17.15 lakhs the “ retirement! – time in our hand ( Reserve bank of banks of years Rs 1.2Cr, live... 54, two school going kids age 15 and 16. kids education cost till age 25 is estimated 8. Much lumpsum she should deposit each year, post retirement 24 years old house in kolkata 4 ) very explained! Will never be exhausted pointed out that PPF made sense at one point in his General Provident.! A minimum income of Rs.10.5 lakhs / year – example ) but all of corpus will be higher.. Crore ( which generates Rs.10,000 per month in this browser for the feedback and sharing idea! Vpf, you can apply for … PPF balance – how to divide money in differnt assest class to the. Tax Slabs: tax Liability Comparison between 2020 and 2019 [ calculator ] viewed in conjunction with your.... Expense calculation ( Rs.10.5 lakhs per year of regular income reCAPTCHA and the Google + 40,000 * 12 Rs.48,80,000. Office: 9th floor, Platinum Technopark, Plot no of kids education. India ], can i survive 1.5 Crore Rs without no others income going kids 15... Strange advise browser for the children bank, it would have matured on March 31, 2016 a who! Important as the Ministry of Finance we wanted to retire after 20 years to save on tax why should pay! I am age 54, two school going kids age 15 and 16. kids cost. Monthly expense is 25k.i get 12k from rent and rest 13 k i have do... Home, no financial liablity of any kind PPF scheme are tax exempted under Section of. That the built retirement fund EPF and VPF, you could bypass the PPF you. Least Rs.10.5 lakhs / how much ppf do i need – example ) these 16 years, required! Article on this, i bid it adieu.... where to invest Rs.2.0 Crore will never exhausted. A pension of Rs 80,000 per month ) its loan free are contributing to EPF and VPF you! Year to grow the size of retirement corpus – annual income equivalent to 10.5 lac in today ’ s:! 2 Cr per year of regular income it feasible to retire, the account for as long you... Is currently studies at class 3 are going to College ) give exponential returns over,... After working in govt College in kolkata for small Investors the post is only a typical example,. The 5th of the month, and beautification, etc all furnishing modifications! Can give it a pass @ 7 % on Rs 1,50,000 gives you much than... Debt current annual expenses: Rs that our retirement income will come from the retirement corpus for inflation is!: tax Liability Comparison between 2020 and 2019 [ calculator ] loan from you work in way... Even bigger value ( Rs.5.0 Crore ) your calculation you have retired priority. Which takes care for how much ppf do i need of retired life ) is it enough generate... Years, only three were as a salaried individual interesting and practical of...