Planning to retire in 10 years? Know how a Rs 23000 monthly investment can help you in your retirement
early retirement goal.
How much money you need to retire in next 10 years
The extent of the retirement corpus you would need to retire in 10 years will largely depend upon your lifestyle, which is likely monthly expenses during retirement and the rate of inflation with which it is likely to grow during retirement years. “If one needs a very basic thumb rule, they should accumulate about 25-30 times the current expenses roughly. This is a very rough estimate,” says Suresh Sadagopan, founder, Ladder7 Financial Advisories.
The most important factor that will matter is the length of expected post-retirement life. If you retire early, you would need a bigger corpus and it should last long enough. The earlier you retire, the longer you would need monthly income. For instance, a person currently at the age of 45 would retire at 55 and may be looking at least 25 years of post-retirement life, while a person at the age of 35 years would be required to prepare for at least 35 years of post-retirement life.
“When planning retirement within the next decade, one widely accepted thumb rule is to aim for a corpus that is 20 to 25 times your expected annual expenses at the time of retirement. This ensures that, even with inflation and market fluctuations, your corpus remains sufficient for at least 25-30 years, assuming an average withdrawal rate of 3-4% annually,” advises Abhijit Bhave, MD and CEO at Equirus Wealth.
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