Retirement Planning for Your Second Inning
Areas covered
- Why retirement planning?
- Social securty in India
- Planning for your retirement
- Creating your own pension system through Mutual Funds
We plan for all our dreams
Earning Age increased
Due to focus on higher studies
Retirement Age reduced
Change in lifestyle
Consequence
Earning Age reduced
Life Expectancy
Life Expectancy is increased due to medical advancement
Shift in social structure
From joint family to nuclear family
Inflation – increasing expenses
Declining value of your saving
Are you planning enough
Value of Saving
Expenses
Health Care expenses rising faster
Health care cost in India is rising at the rate of 10% p.a. with new
lifestyle diseases getting every 5 to 10 years; we need to do provision
for healthy retirement
*Assuming cost increases at 10% every year
#Internal Research. Approx cost
Major surgery cost
Lack of social security
- India’s pension system is already
ranked 28 out of the 30 countries. - ONLY 7.4% of the working age
population in India is covered under a
pension program
Future looks scary
- By 2050, 19% of Indians will be above 60 years
of age, according to the UN Population Division, but
only 25% of that population currently have some
form of pension cover. - 60% DO NOT have any retirement plan. Yet 63%
feel that they will have sufficient money during their
retired years
Financing not available
Most expensive financial Goal
&
Financing not avilable
Plan wisely!
RETIREMENT
WITH
Mutual Funds
Retirement Planning Solution
SIP + SWP
Systematic Investment Plan & Systematic Withdrawal Plan
YOUR OWN RETIREMENT SOLUTION WITH
MONTHLY PENSION LIKE CASH-FLOW AFTER RETIREMENT
How does it work!
Two step process
- Invest through SIP for your retirement
while you are young. - Generate regular income through
SWP during retirement.
Case study
Name – Mr Prashant Sharma
Age – 28 Years
Monthly SIP Amount – Rs 10000/-
Retirement Age – 55
Assumed return – 12%*
Retirement corpus – SIP
Name – Mr Prashant Sharma
Age – 28 Years
Monthly SIP Amount – Rs 10,000/-
Retirement Age – 55
Assumed return – 12%*
Retirement Corpus
Rs. 2,16,23,129
*Assumed return is only for the illustrative purpose and not to be considered as a guarantee.
Monthly Withdrawal – SWP
- Retirement Corpus – Rs. 2,16,23,129
- Return expected from debt MF – 6%*
Monthly withdrawal
Rs. 1,08,116
(Consider this as a pension)
*Assumed return is only for the illustrative purpose and not to be considered as a guarantee.
Your own pension system
By investing Rs 10000/- monthly
starting from Age 28 , Prashant can
create his own ‘pension like’ the
monthly withdrawal of Rs. 1,08,116
after retirement.
*Return from Equity fund is assumed as 12% p.a. and from debt fund for the purpose of SWP 6% p.a. is
considered.
Your own pension system
Cost of delay
In Nutshell
- Planning for your own retirement is the most crucial financial goal.
- Starting early is the key
- Create your own ‘Pension like’ system with the help of SIP & SWP of Mutual Funds
