The Silent Wealth Killer: Inflation
The biggest mistake people make when planning for retirement is calculating their required corpus based on their current monthly expenses.
If your monthly expenses are ₹50,000 today, an average inflation rate of 6% means that in 20 years, you will need approximately ₹1.6 Lakhs per month just to maintain the exact same lifestyle.
Our Retirement Planner uses the Future Value formula $FV = PV \times (1 + r)^n$ to calculate exactly what your cost of living will be on the day you retire, ensuring your target corpus is based on reality, not optimism.
Pre vs. Post Retirement Returns
Asset allocation must shift as you age to protect your capital.
- • Pre-Retirement (Growth Phase): You have a regular salary and can afford stock market volatility. You should be heavily invested in Equities (Mutual Funds) targeting 12-14% returns.
- • Post-Retirement (Withdrawal Phase): You no longer have a salary. Your capital must be protected. You must shift heavily to Debt (FDs, Bonds, SCSS) targeting a safer 7-8% return.
The FIRE Movement
FIRE stands for Financial Independence, Retire Early. It is a strategy of aggressive saving and investing to retire in your 40s instead of your 60s.
To achieve FIRE, practitioners aim to accumulate a corpus equal to 25 to 30 times their annual expenses. Once achieved, they follow the "4% Rule"—withdrawing a maximum of 4% of their portfolio annually to ensure they never run out of money, allowing them to stop working decades early.