Future Family Expenses:
Pre Condition: Assume No Debt in current situation with Frugal style of life, staying in own house, already invested in real estates for big ( education/marriage) expenses etc.Inflation: 12%
Now: 15000 is spent per month
5 years from now: 26500
10 years from now: 46500
15 years from now: 82000
20 years from now: 150000
25 years from now: 255000
On an average, if you are retiring 10 years from now, you should get 1.25 lacs p.m to manage family expenses. So, are we really ready for it, definitely not. One should plan for retirement corpus as 8% of X = 1.25 lacs p.m [ POMIS income ]. So plan for X= 1.5 crores as savings in next 10 years if you are at Age: 35 now.
Please correct me, if I am wrong here.
Thanks
Sunil