Many of us are likely to live long enough on this planet to need some kind of assisted living.

How much exactly does staying in an old age home cost? Frankly I have not done enough research to do such a post, but here is some rudimentary info. You will need to do more research yourself…

For a typical Tam Brahm – who is looking for veg food and a very simple lifestyle, I found the prices ranged from Rs. 10,000 a month to about Rs. 15,000 a month. I am not imputing any cost to the deposit which is to be made. The deposit varied from Rs. 50k per couple to Rs. 15 lakhs per couple. These costs do not include medical expenses or any other type of special expenses. SIMPLE DAY TO DAY LIVING EXPENSES including laundry, food, electricity…THAT IS ALL.

Assuming it costs about Rs. 15,000 per head per month TODAY…it is likely to cost the following:

2011     Rs. 15,000 p.m.  x 12 = Rs. 180,000

2020    Rs. 30,000 p.m. x 12 = Rs. 360,000

2031     Rs. 60,000  x 12              Rs. 720,000

So how much money will you need to retire to a home like this?

Well just for the food and shelter you will need Rs. 360,000*30 years = Rs 1.8 crores if you retire in 2020. Apart from this you need to provide for your other expenses like telephone, travel, clothes, festivals and of course medical expenses.

Now Rs. 1.8 crores invested in a bank should give you about 5-6% p.a. returns POST TAX..assuming you do not do anything stupid like investing in a venture fund or an infra fund without any understanding of infra or venture! Straight simple income fund, bank fd, senior citizen fund, index fund (inflation protection)…kind of portfolio. Rs. 9 L will be the income in the first year..and you will REINVEST Rs. 640,000 – all this reinvested amount will help you tackle with inflation.

Hopefully I will do more posts on old age homes and its expenses….I NEED IT, not sure whether you do. Yes I do have a lovely daughter – but have a heart, why should she put up with a cranky old man with stupid ideas….OMG my heart goes out for her already!!!

By the way, did I hear you saying you have a spouse and you are retiring in 2031?

Well the amount is 720,000 * 2 *30 = 4,32,00,000… the amount…

Happy 2012!


Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

  1. Kartikeswar Bisoi

    Good morning rajesh.

    Could you please kindly let me know how much premium you paying in advance for your old age home requirement .


  2. Hi, we are two individuals who enjoy singing old Hindi Bollywood songs of the golden era and we do it voluntarily to elders who enjoy listening to them. We do it online through facebook live. Showing you here below a sample of how we do it. Please see the video and read through the comments also. If you want us to entertain your elders through facebook live, then please do contact me. We can arrange a session for your elders there. Please visit


    V G Abraham

    Mobile 9820564717

Leave a Reply