From dependence to independence: Mutual funds as a pillar of retirement planning
financial independence in these years not just desirable, but essential.
Retirement planning is not merely a financial exercise; it is a strategic alignment of today's investments with tomorrow’s needs, ensuring a sustained quality of life even after the steady flow of income ceases. A robust retirement plan is one that not only secures your future but also ensures a continuous income stream during your golden years, safeguarding your independence.
Strategic Planning for Retirement
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-112540754»>Retirement planning should begin as early as possible, allowing time to maximize the growth of your investments. The strategy you adopt—whether it's aggressive or conservative—depends on factors such as your current age, lifestyle, and expected life expectancy.
For example, consider a 32-year-old individual planning to retire at 60 with a life expectancy of 75 years. Assuming an average inflation rate of 6% and a reasonable return on investment of 13%—aligned with India's nominal growth rate—a current monthly expense of ₹35,000 would require an annual income of ₹21.47 lakh post-retirement to maintain the same standard of living. To achieve this, one would need to accumulate a retirement corpus of approximately ₹3.2 crore. Such calculations can be readily performed using any online retirement calculator.
Mutual Funds: A Versatile Tool in Retirement Planning
Among the various instruments available for retirement planning—such as
