Current Age 25 years Age

Retirement Age 60 years 25

Life Expectancy 80 Current Value is 69.66 years for 2019 26
Years to Retirement 35 years 27
Post Retirement Years 20 years 28
Rate of Inflation 7.5% Current Annual Rate is 6.8% for 2021 29
Annual Salary ₹ 1,200,000.00 INR 30
Expected Annual Increment in Salary 5% Average value in 2021 was 7.4% 31
Percentage spent out of Annual Salary 40% 32
Percentage of Annual Salary Invested 30% 33
Calculation for Rate of Return post-retirement 34
Return on Equity 12% 35
Long term Capital Gains tax 10% 36
Post-Tax Return on Equity (Re) 10.8% 37
Return on Bonds 5% 38
Marginal Tax Rate 10% 39
Post-Tax Return on Bonds (Rb) 4.5% 40
Weight of Equity post-retirement (We) 30% Decumulation Phase begins at the age 41
Weight of Bonds post-retirement (Wb) 70% of 60 years post retirement 42
Capital Asset Pricing Model (CAPM) 43
Rate of Return (R) = We*Re + Wb*Rb 6.39% 44
Assuming the Value as 6% per annum 45
46
Expected Return Post-Retirement 6% Moderate Risk Profile post-retirement 47
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53
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55
56
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60
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Retirement Corpus required at the

age of 60 years =
INR 10,08,21,647.10
 70
71
Retirement Corpus required at the
72
age of 60 years = 73
INR 10,08,21,647.10 74
75
76
77
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79
80
Annual Salary Annual Expenditure Year End Retirement Corpus Investing Lifecycle
₹ 1,200,000.00 ₹ 480,000.00
₹ 1,260,000.00 ₹ 516,000.00
₹ 1,323,000.00 ₹ 554,700.00
₹ 1,389,150.00 ₹ 596,302.50
₹ 1,458,607.50 ₹ 641,025.19
₹ 1,531,537.88 ₹ 689,102.08
₹ 1,608,114.77 ₹ 740,784.73
₹ 1,688,520.51 ₹ 796,343.59
₹ 1,772,946.53 ₹ 856,069.36
₹ 1,861,593.86 ₹ 920,274.56
₹ 1,954,673.55 ₹ 989,295.15 Accumulation Phase
₹ 2,052,407.23 ₹ 1,063,492.29
₹ 2,155,027.59 ₹ 1,143,254.21
₹ 2,262,778.97 ₹ 1,228,998.27
₹ 2,375,917.92 ₹ 1,321,173.14
₹ 2,494,713.82 ₹ 1,420,261.13
₹ 2,619,449.51 ₹ 1,526,780.71
₹ 2,750,421.98 ₹ 1,641,289.27
₹ 2,887,943.08 ₹ 1,764,385.96
₹ 3,032,340.23 ₹ 1,896,714.91
₹ 3,183,957.25 ₹ 2,038,968.53
₹ 3,343,155.11 ₹ 2,191,891.17
₹ 3,510,312.86 ₹ 2,356,283.01
₹ 3,685,828.51 ₹ 2,533,004.23
₹ 3,870,119.93 ₹ 2,722,979.55
₹ 4,063,625.93 ₹ 2,927,203.01
₹ 4,266,807.23 ₹ 3,146,743.24
₹ 4,480,147.59 ₹ 3,382,748.98
₹ 4,704,154.97 ₹ 3,636,455.16 Consolidation Phase
₹ 4,939,362.71 ₹ 3,909,189.29
₹ 5,186,330.85 ₹ 4,202,378.49
₹ 5,445,647.39 ₹ 4,517,556.88
₹ 5,717,929.76 ₹ 4,856,373.64
₹ 6,003,826.25 ₹ 5,220,601.67
₹ 6,304,017.56 ₹ 5,612,146.79
₹ 6,619,218.44 ₹ 6,033,057.80 ₹ 133,827,906.66
₹ 6,425,206.56 ₹ 135,683,875.61
₹ 6,842,844.98 ₹ 136,571,492.47
₹ 7,287,629.91 ₹ 137,040,894.31
₹ 7,761,325.85 ₹ 137,036,342.57
₹ 8,265,812.03 ₹ 136,496,762.37
₹ 8,803,089.81 ₹ 135,355,292.90
₹ 9,375,290.65 ₹ 133,538,802.39
₹ 9,984,684.55 ₹ 130,967,364.91
₹ 10,633,689.04 ₹ 127,553,696.42

Decumulation Phase
₹ 11,324,878.83 ₹ 123,202,546.65
₹ 12,060,995.95 ₹ 117,810,043.74
Decumulation Phase
₹ 12,844,960.69 ₹ 111,262,988.04
₹ 13,679,883.13 ₹ 103,438,091.20
₹ 14,569,075.54 ₹ 94,201,156.60
₹ 15,516,065.45 ₹ 83,406,196.62
₹ 16,524,609.70 ₹ 70,894,482.13
₹ 17,598,709.33 ₹ 56,493,519.17
₹ 18,742,625.44 ₹ 40,015,947.35
₹ 19,960,896.09 ₹ 21,258,354.34
₹ 21,258,354.34 ₹ -
 Expenditure
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