I have Rs 1 crore as savings and investments and I will be retiring in four years from now. I do not have any liabilities and have adequate health insurance. But, I do not have any pension. I am looking or Rs 1 lakh as pension every month when I retire. What can I do to achieve my retirement goal?
Puneet Kuckreja, Mumbai
You don’t need to put money into a product that says it is a pension plan. You can create an income stream in retirement in various ways. With the retirement savings of Rs 1 crore, what you are aiming for is not possible because you have not factored in inflation and the period for which you will be creating this income stream. If you retire at 60, chances are you will live for another 20-30 years in retirement along with your spouse. You are not factoring in expenses on travel in case your children live abroad and so on.
What you mention as the monthly income that you will need once you retire, will be equivalent to Rs 75,000 of today. So, you will need a lot more than Rs 1 crore to maintain the cash flow you envisage in retirement. The way out for you is to either postpone your retirement by a few years in which time you should continue to earn and build your corpus or be realistic with what you will be able to have as income stream when you retire from the corpus you currently have.
