Retirement At 60 Is Not The Problem, Running Out Of Money At 75 Is
Financial experts warn that retiring at 60 requires more than just a fixed corpus, as inflation can erode purchasing power over a 25-year retirement period. Relying solely on fixed deposits may be insufficient to cover rising healthcare and living costs.
Why it matters
As life expectancy increases, traditional retirement planning strategies are becoming inadequate for long-term financial security.
For decades, turning 60 has been treated as the financial finish line. The salary stops, the retirement corpus takes over and fixed deposits are expected to carry a person through the rest of life.But there is a bigger question retirees need to ask: Will the money last?Retirement planning is no longer just about accumulating a large corpus by 60. It is about making that money work for another 25 to 30 years, while expenses rise and healthcare costs become harder to predict."Retirement at 60 is not the problem. The real test is whether your money retires before you do," Charu Pahuja, CFPCM, Director & Chief Operating Officer, Wise FinServ, told NDTV.The Rs 1 Crore Retirement Corpus May Not Be EnoughConsider a couple retiring at 60 with Rs 1 crore and monthly expenses of Rs 50,000.At first glance, the corpus may appear comfortable.
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