Retirement Planning: Investment strategies for monthly income

Financial experts suggest that effective retirement planning must go beyond simple savings to create a fund capable of providing regular income. Due to rising inflation and increased life expectancy, early investment is recommended to build a sufficient corpus.

A popular method for generating post-retirement income is the Systematic Withdrawal Plan (SWP), which allows investors to withdraw fixed monthly or quarterly amounts while maintaining their principal investment. Experts recommend estimating a retirement corpus that is approximately 300 times one's current monthly expenses.

To achieve a monthly income of 50,000 rupees after retirement (assuming an 85-year life expectancy, 6% inflation, and a 12% average return), the required monthly investment depends heavily on the starting age. An individual starting at age 20 would need to invest approximately 13,114 rupees per month to build a corpus of roughly 15.42 crore rupees by age 60. Starting at age 25 requires a monthly investment of about 17,928 rupees to reach a fund of 11.52 crore rupees.