Retiring at 50 may require significantly more savings

A 36-year-old individual with savings of Rs 40 lakh wants to retire at 50. Currently, their monthly expenses are around Rs 15,000. An expert suggests that if they invest their savings in equity for 14 years at a 12% annual return, they could accumulate around Rs 1.95 crore. However, with inflation expected to rise at 7%, their monthly expenses will increase to about Rs 38,000 in 14 years. Given these factors and assuming they live until 85, the expert predicts they might run out of money before reaching that age. They would ideally need around Rs 3 crore to retire comfortably at 50. To reach this goal, the expert advises saving more and investing through mutual funds. Increasing SIP contributions by 5-10% each year is also recommended. In another example, a 28-year-old earning Rs 20 lakh a year wants to plan for retirement and children's education. An expert recommends setting aside 35% of their salary for these goals. Specifically, 20% should aim to build retirement savings, while 15% can fund children's education. If investments grow at a 12% return, the individual could accumulate Rs 31 crore for retirement by age 60 and Rs 2.5 crore for children's education in 17 years, while managing expenses wisely.