Securing your Retirement Corpus
A retirement corpus is the total amount of money you will need to accumulate by the time you retire to maintain your current lifestyle. It requires accurately mapping your current expenses against projected inflation for decades to come.
Core Math/Formula: Target Corpus = Present Value of a Growing Annuity based on Inflation and Post-Retirement Returns.
Common FAQs
Why is inflation so critical in retirement planning?
Inflation completely destroys purchasing power. If your monthly expenses are ₹50,000 today, an average 6% inflation rate means you will need nearly ₹2.8 Lakhs per month to afford the exact same lifestyle in 30 years.
What is the Pre and Post Retirement Return?
Pre-retirement returns (10-12%) simulate aggressive equity compounding while you are working. Post-retirement returns (7-8%) simulate safer debt-oriented funds during retirement.