5 years ago · carehome · 0 comments
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