10% Retirement Rule
03 Nov 2022
10% Retirement Rule
It is prudent for individuals to start investing in early years of life to have comfortable living and lifestyle post retirement. How much should one save to meet there retirement goals?
While retirement planning is the last thing that comes to one's mind in their early years, market experts believe in following a simple thumb rule. It states that one should ideally invest 10% of his/her monthly income and also increase it 10% annually for a comfortable living post retirement.
The below example further brings more clarity:
Age | 30 |
per month investment | 5000 |
increase in investment / year | 10 |
Average rate of return | 12 |
Tenure of investment | 30 |
Total investment Amount | 9869641 |
Total retirement corpus | 41508900 |
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