After retirement you will have your own expenses like travels, medicals, other day to day expenses etc. Do the total of these expenses. So now, you need to build a capital that can generate this much of income every year post-tax. Say for example, if we consider 8% annual returns from fixed deposit and your annual expenses are Rs.8 lakh after your retirement, then you will have to build Rs.1 crore of capital to retire peacefully.
Consider INFLATION while counting your financial goals for Retirement.
For example if you are planning to retire in 2015 then Rs. 1 Crore may be enough, but If you are planning to retire in 2030 then Rs.1 Crore may not be sufficient as inflation will decline the purchasing power for money further.
The average inflation of India in 2011: 8.88 %
As you all know routine retirement age is 60, But it totally depend upon your decision when do u want to retire. After retirement as you will have a lot of free time, you can turn your hobbies into profession like becoming a consultant, community services, Small businesses, blogging etc. If you don’t mind working after retirement, then u can go for it and enjoy extra income with your hobbies in your happy retirement days.
In your active earning years, when you have cash flowing into your bank account you should seriously consider topping up your pension savings. Consider INFLATION, set a clear target and try to achieve it.
Equity mutual funds are the best financial products to build ample wealth for your retirement.
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