Fill the Income-Expenditure Gap

Whether there will be an income-expenditure gap in retirement depends on several factors, including your current income, lifestyle, savings, investments, inflation, and post-retirement expenses.

- PV SUBRAMANYAM

This gap is a concern due to rising life expectancy, increasing healthcare costs, and no social security. When you are about 10 years away from retirement ask yourself these questions:

How much is your monthly expenses on electricity, society charges, food, travel, fuel, salaries to cook, servants, etc.,

How much do you really spend on buying food, eating out, etc.

Expenses on special occasions -marriage of siblings, children of siblings, other events, festivals, etc.

Vacations and other annual expenses - insurance, etc.

Income Sources in Retirement:

Pension: Limited to government or organised sector employees

Investments: Returns from fixed deposits, mutual funds, dividends, or rental income.

Savings: Withdrawals from savings accounts, PPF, NPS.