Retirement Planning Case Study

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Retirement Planning Case Study

Retirement Planning Case Study

Mr. VEERU is aged 48 year old married individual and is currently working with MNC Company as a Senior Manager in Ahmadabad. His wife is the only member of his family dependent on him. Mr. VEERU wants to retire at the age of 60 years and had a family history of longevity over 80 years so he has assumed to have his life expectancy at 85 years.

Mr. VEERU would like to retire at Ahmadabad

His Data , Expectations and Assumptions :

Current Age: 48
Wife Age : 48
Inflation 7%

Expected Return ( Pre Retirement) 10%
Expected Return ( Post Retirement) 8%

Retirement Age: 60
Life Expectancy Self and wife : 85 year

Current Retirement Asset : 30,00,000/-

Retirement Need PM, As per today’s Basic and Utility Expenses : 60000/- plus Travelling & Other expenses : 15000/- TOTAL = 75000/- PM

Solution:

Retirement Accumulation Phase: 12 Years (60-48)

Retirement Distribution Phase: 25 years (85-60)

Retirement Monthly Exp @ Age 60 : 1,68,914/- Pm. 20,26,972/- PA

Retirement Fund Required @ age : 60 : 4,48,57,386/-

Current Retirement Fund value @ 60 : 94,15,285/-

Short fall of Retirement Fund @ 60 : 3,54,42,101/-

Need to Save PM for this Short fall for next 12 Year :1,27,150/- PM

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