Living through your Golden Years – Your most expensive Financial Liability

Comfortable Post-retirement living maintaining atleast similar life-style and standard is something that all of us aspire and dream about. Typically, by that time, most of us tend to be free from majority of our financial obligations- kids are settled or are about to settle, no more loan repayments etc…

For majority of us, if not for all, funding post-retirement living turns out be our most expensive financial liability getting our least focus and attention during most of our earning phase

Its undoubtedly the Golden Years of our life which we want to live and cherish the most.

Do we know how much we may need to fund our post-retirement living ?

For majority of us, if not for all, funding post-retirement living turns out be our most expensive financial liability getting our least focus and attention during most of our earning phase

So, lets have a glimpse of the overall corpus that we may require at the start of our retirement and year-on-year expense projections during the retirement period.

Key considerations, Assumptions and Conservative expense estimates in today’s value:

Age Profile consideration
Current Age: THREE Scenarios (1) 35 years (2) 40 years (3) 45 years
Retirement Age: 58 years
Life Expectancy: upto 75 years for both Self and Spouse

Expense Heads
Typical expenses that may arise during retirement period for Self and Spouse. Cost estimates are based on the assumption that if you have attained the age of 58 years what can be your expenses in today’s value terms.

Basic living expenses – includes household expenses like food, clothing, maid fees, utility bills, maintenance/service charges etc. 300,000 per year ( 25,000 per month)

Lifestyle/Social/Travel expenses – includes traveling, outside stays, small get-togethers/outings, membership fees towards any religious/social organization etc.. 50,000 per year

Health/Fitness expenses – includes routine health checkups, consultation/medicines, fitness program etc.. 50,000 per year

Critical Illness Hospitalization expenses – includes one-time hospitalization cost for any MAJOR ailment 500,000 each for Self and Spouse.

Emergency Fund – includes 6-months Basic living expense cost for any unforeseen or unplanned event 150,000

Other Considerations
Cost Inflation: 7.5% p.a (last 55 years average yearly CPI Inflation of India)
Critical Illness Hospitalization Inflation: 8% p.a
Post-tax Investment Return during Retirement period: 6.5% p.a


Retirement Planning and Expense Analysis for 35 year old individual planning to retire at the age of 58 years with current Monthly Basic Living Expenses of Rs. 25000 for Self and Spouse


Retirement Planning and Expense Analysis for 40 year old individual planning to retire at the age of 58 years with current Monthly Basic Living Expenses of Rs. 25000 for Self and Spouse


Retirement Planning and Expense Analysis for 45 year old individual planning to retire at the age of 58 years with current Monthly Basic Living Expenses of Rs. 25000 for Self and Spouse


Above projections would have provided good insights about your most expensive financial liability of Funding your Retirement living.

Definitely, you may neither like to pass-on this basic liability of yours to your beloved children nor accept any compromise to your current living standard.

Identifying your exact need based on your current age profile and lifestyle followed by how to fund the same is the right approach to go about Retirement Planning.


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