Retirement Planning: How much money will it take to live a wonderful old age? This simple formula will answer in minutes..

Money is considered the greatest strength in old age. If you have sufficient savings and funds, you don't have to depend on anyone or worry about expenses. Therefore, the earlier you start retirement planning, the better. But the biggest question is how to estimate how much money you need to live a comfortable old age after retirement? Because retirement planning requires a goal, only then will you be able to formulate a strategy. To understand this, financial experts recommend a very simple and effective rule: the 30X Rule. Here, understand how this simple rule will solve your dilemma.

What does the 30X Rule say?
According to financial experts, if you want to maintain the same lifestyle you live today after retirement, your retirement fund should be at least 30 times your current annual expenses.

Example:
Let's say your current monthly expenses are: ₹1,00,000
Annual expenses: ₹1,00,000 × 12 = ₹12,00,000
Now, according to the 30X Rule -
₹12,00,000 × 30 = ₹3,60,00,000
This means you need at least ₹3.6 crore for a comfortable retirement.

How to raise such a large retirement fund?
Long-term investments, especially SIPs in mutual funds, are very helpful in achieving this goal. SIPs require a fixed amount every month, and mutual funds offer an average return of up to 12% over the long term.

If you are 30 years old, how much do you need to invest?
Target: ₹3.6 crore
Investment period: 30 years
Assuming returns: 12%
Required SIP: Approximately ₹12,000 per month
Total investment over 30 years: ₹43,20,000
Return (interest): ₹3,26,51,679
Total funds: ₹3,69,71,679
That means, with a SIP of ₹12,000, you can easily become a millionaire by the age of 60.

If age is 35, how much investment is required?
The investment period reduces to 25 years.

The same goal: ₹3.6 crore
Required SIP: Approximately ₹21,000 per month
Total investment over 25 years: ₹64,50,000
Return (interest): ₹3,01,47,441
Total funds: ₹3,65,97,441
This means that as you age, you need to invest more to reach your goal. Therefore, start as early as possible so that your financial burden doesn't increase and you can easily reach your goal.

Why is retirement planning important?
Medical expenses increase in old age.
There is no other guarantee of regular income.
Inflation increases expenses every year.
A strong fund is essential to maintain your lifestyle.
Having money makes retirement stress-free.

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