Retirement Lane

This question may arise in your mind - How Much I require to Retire in India?

Well it totally depends upon ones level of lifestyle, in which city of India you live and how much you want to spend after your retirement and of course at what age you want to retire? I cannot say that you will require XX amount to retire with complete financial freedom. May be Rs.1 Crore is enough for you to retire peacefully or Rs.10 Crore is also not enough for you.

According to CCA (Compensatory City Allowance) classification of India, A-1 cities are Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Kolkata. So if you are planning to retire in 2015 in A-1 cities with moderate life style than Rs.1 Crore may be enough to retire as it will generate Rs.6-7 Lakh post tax return every year but if you are planning to retire in 2030 in the same city with same life style than Rs.1 Crore may not be enough as the inflation will drive the lifestyle further higher.

Inflation is very important factor you have to consider before planning for retirement. If you consider Inflation and plan accordingly, you are the one who can predict how much is enough for you to retire peacefully. Consider each and every major and minor expense you will do after retirement. Do simple estimation and predict that how much capital you will require to generate that much of monthly post-tax income. And this much of capital should be your ultimate financial planning goal.

Don't ignore inflation while calculating your retirement goal. Depending upon your life style and retirement year estimate your retirement fund. No matter if your prediction goes wrong a bit. Atleast you will have satisfaction that you have tried.