Mr. Partho, who is 30 years old, has approached a financial planner for analysis of his retirement needs and wishes to start saving now towards this goal. He will retire at age 55. Life expectancy is assumed to be 75 years. Present annual expenses are Rs. 3,00,000 and he wishes to maintain the same standard of living after retirement. The rate of return expected on investments is 12% per annum and the average inflation rate is assumed to be 5% per annum throughout the phase. How much does he need to save every month in order to maintain the same standard of living even after retirement

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.