I was reading an article saying that 20K a month (2.4L a year) was considered a decent starting salary in 1995. Now, 30 years later, a decent starting salary would be 1.5L a month (18L a year) which is 7.5 times as much. So, going by that logic, should the retirement corpus for someone be premise on having at least 1.35 crore to live on every year from 2055 to 2065? Or, 62 lakhs per year from 2040 to 2050? Or, 31 lakhs per year from 2030 to 2040? Seems about right?
I am assuming a decent upper middle class standard of living here. 2BHK with Dzire/Tata Bolt car and driver, 1 meal in a good restaurant every month and in a five star hotel every 2 months, 1 foreign holiday every year.
Also assuming no kids and spouse who has own savings and not relying on yours. So basically a single-person estimate.
If you want the rule of thumb, then here it is: 40-50 times the annual expenditure depending on when you retire and depending on the nature of your portfolio. There are lots of exceptions, nuances, and personal elements (such as termprament, habits, and situation) which impact the final figure.
The way you are looking at this is just completely wrong. Spend maybe 30-40 hours reading about this (but only good sources please) and then you will understand why this is the rule of thumb.
All bets are off the table because of inflation, climate change, future pandemics etc. So the target should be to reach a figure of 100 crore to feel safe.
I was reading an article saying that 20K a month (2.4L a year) was considered a decent starting salary in 1995. Now, 30 years later, a decent starting salary would be 1.5L a month (18L a year) which is 7.5 times as much. So, going by that logic, should the retirement corpus for someone be premise on having at least 1.35 crore to live on every year from 2055 to 2065? Or, 62 lakhs per year from 2040 to 2050? Or, 31 lakhs per year from 2030 to 2040? Seems about right?
I am assuming a decent upper middle class standard of living here. 2BHK with Dzire/Tata Bolt car and driver, 1 meal in a good restaurant every month and in a five star hotel every 2 months, 1 foreign holiday every year.
Also assuming no kids and spouse who has own savings and not relying on yours. So basically a single-person estimate.
The way you are looking at this is just completely wrong. Spend maybe 30-40 hours reading about this (but only good sources please) and then you will understand why this is the rule of thumb.