If you want to retire today with Rs 50,000 per month income (Rs 6 lakh annually), how much money should you ideally have at the time of retirement if you have fixed deposit (FD), annuity or systematic withdrawal plan (SWP) as investment tools?
A report titled ‘The Science of Retirement Planning: Navigating Hidden Risks in a Long Retirement’ reveals the amounts one requires to get Rs 50,000 per month (Rs 6 lakh annually) through FD, annuity and SWP investments.
Numbers in the report reveal retirement corpus required under different income strategies over a 40-year horizon, assuming survival up to age 100.
The analysis compares four popular retirement income instruments — FD, life annuity, SWP, and ScientificPay (a strategy prepared by OmniScience Capital Advisors, the company that prepared the report) — to show how much total retirement corpus is required to safely generate Rs 6 lakh annually from the start of retirement.