What's Enough For Retirement?

It's crucial to make your own estimate for a retirement corpus, based on your expenses and lifestyle habits. This exercise should be unique to each individual

- By JOYDEEP SEN, Corporate Trainer and Author

Nowadays, we receive a lot of information through the internet.

Social media also provides lots of opinions, but it is not regulated by any financial market regulator. There is a trend on social media—by a section of financial planners or advisors—of putting forth an amplified number which is required for your required retirement corpus.

The logic given may be correct: the increased cost of living in today’s world, lifestyle, and future inflation, reduces the purchasing power of money, among others.

However, the inherent message in those social media posts, though not explicit, is that you require “so much” of money to retire peacefully, hence you “come to me” for advice and I will help you create that much required corpus.

Taking advice from a professional financial planner is always desirable and recommended. However, the inducement to do so should not be because of an amplified number propagated on social media, mainly designed to induce fear. The more money you have, the merrier, but the estimate has to be in tune with your future goals, lifestyle choices, level of income and expenses.

Estimation of Expenses

While it is true that people's lifestyle expenses have moved up, and inflation will eat into your kitty, but ultimately, it is about your own lifestyle and expenses, which is unique to you and will have a bearing on your corpus.