One Reader named Rajeev had put this in the comment column and had addressed to another reader Siddhant. Since all of you may not be reading the Comments column, reproducing it here. Not a word has been changed…


I went through similar disbelief a few years ago. Then I used my excel skills to create a simple worksheet. As I am nearing the retirement age, it helps project more correctly what will be your running cost after retirement. Rajeev happy to put your excel sheet also if you do not mind sharing…

The net funds you require as savings after retirement is indeed in crores of rupees. Just do the math and take all factors into consideration.
Present monthly expenses
Annual savings till retirement
Present savings value
Expected returns on savings till retirement
Expected return on savings after retirement
% of present income you will need after retirement. (This will rise not reduce after retirement, due to extra travel / medical)
Any extraordinary expenses left over – Children’s marriage / house etc
Loans to be repaid before retirement
Expected Income tax rate
etc etc.
The calculations showed that you are safe only if you can get returns that are higher than inflation even after retirement. This means having equity exposure till you die.
Being scared of the figure will not help. The earlier you start, ther better prepared you will be.

Life expectancy is rising in India too due to better medical care / awareness about health issues . This adds to the problems. Ladies outlive their husbands very often. One has to take care that your partner understands the planning and supports the same.


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  1. Subra, the numbers are scary for typical middle class families who have their networth upto 50 lakhs at retirement and are in tier -2 cities..
    Isnt good parenting a cushion atleast for parents retiring in next 2-4 years..

    For one, I will stand by my parents in all times come what may. I may not expect this to happen to me though..:)

  2. What people say is Noble. What people do is facts. When I have Rs. 5 crores, and my dad needs Rs. 5L it is never a problem. See Gopal Raheja case. The son is refusing to give him entry into his OWN house…the case is in the court. Why? the son says ‘My dad is being fooled by a young Sadhvi’…godammit it is HIS money..why the HELL can’t he blow a couple of crores? Son decides that father should NOT. These are real life issues. Too damn common – remember Bhai Mohan Singh was thrown out by Parvinder who himself died of cancer – Ranbaxy. Shahjahan was thrown out by Aurangazeb….NOT money, but CONTROL over the money is an issue.

  3. Subra,

    I will work on making the excel sheet more user friendly and generic and then post it to you. Will take some work. At the moment it suits my specific time horizon. The formulas and other calc is correct and will work for any one.

  4. @Rajeev: Please do upload your excel template. It will be helpful to us who do not know where to begin, and yet we could fine tune it.
    Thanks in advance.

  5. Subra,

    Trying to attaching the excel sheet as I created it. After trying to make it automatically adapt to any starting age, I have given up. It will take not much effort for individuals to change it for their needs. Green cells are for entry of data.

    How do I paste the file??

  6. Hi Subra sir,
    should not we estimate what is going to happen in next 20 years? I mean how can you be so sure that inflation will always be x% for next 50 years. Why not less than that?
    Global economy keep changing. US, UK, ECB are printing money and still predicting deflation. Why do you assume inflation will be in the range of 8-10% for next 50 years in India? It can be just 4%.
    Why to save unnecessarily in young age when you know that you wont have enthusiasm to enjoy life at old age.

  7. @Rajeev: Please upload it at any file-sharing site like sendspace

    or email it to me at febtastic ‘at’ gmail ‘dot’ com
    and I shall upload and share the link

  8. Dear Subra,

    I am a senior officer from the armed forces with a fairly diverse portfolio and wish to consult you as a paid financial adviser. Please send me your contact details.


    A S

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