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Retirement Planning for Individuals

Retirement Planning for Individuals
Outline

Outline

Banking Professional

Banking Professional

To Retire In 8 Years

To Retire In 8 Years

No Retirement Plan Yet

No Retirement Plan Yet

Case Characteristics

Case Characteristics

  • Client is a banking professional with a monthly income of Rs. 1.25 lakhs. He is currently 50 years old and will retire after 8 years.
  • He has a corpus set aside for his daughter’s wedding. But he doesn’t have any income planning for life post retirement.
Fascinating Findings

Fascinating Findings

  • Upon retirement, client is set to receive approximately Rs.20 lakh from his insurance policies, and around Rs. 25 lakhs as retirement benefits from his employers.
  • The client will require at least Rs. 50,000 per month for life post retirement, for which he will need a corpus of Rs. 85 lakhs. He is falling short of Rs.40 lakhs for his retirement corpus.
Actionable Alternatives

Actionable Alternatives

  • Despite having a good health insurance, we suggested he increase his insurance up to Rs. 10 lakhs, because increasing age will make him vulnerable to expensive medical treatments.
  • We suggested that his insurance term plan of Rs. 75 lakhs be kept as it is, given we were planning a substantial retirement corpus for him.
  • The client informed us that he can afford up to Rs. 30,000 from his current salary towards his retirement corpus shortfall. Given his age, we suggested an investment strategy devoid of major risks from equity products carried:
    • Rs. 15,000 to be invested in an equity linked product expecting annualized return of 12%.Which will sum up to Rs. 23.5 lakhs after 8 years.
    • Rs. 12,000 to be invested in a fixed income product expecting annualized return of 8%.Which will sum up to Rs. 15.75 lakhs after 8 years

Remarkable Results

Corpus Of Rs.85 Lakhs In 8 Years

Corpus Of Rs.85 Lakhs In 8 Years

By the time the client retires, his corpus will reach the target figure of Rs. 85 lakhs.

Rs.50,000 Every Month Guaranteed

Rs.50,000 Every Month Guaranteed

Guaranteed regular returns of 7% from investment of corpus in financial products will earn Rs.50,000/month.

No Worry Of Medical Emergencies

No Worry Of Medical Emergencies

Client won’t have to worry about any future medical costs, thanks to the increased health insurance.

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