Planning retirement without kids? Here's how to make the most of it

Couples without kids can opt for larger monthly payouts without worrying about passing on wealth

- Sashind Ningthoukhongjam

Are some dreams worth sacrificing? For a growing tribe of double-income, no-kids (DINK) couples, the answer is a clear "yes." These are dual-income households that have chosen not to have children, by choice or circumstance, and are, as a result, rewriting the rulebook on what retirement can look like.

The DINK lifestyle is often associated with freedom—freedom from parental responsibilities, from stress, and sleepless nights. But beyond these preferences, there's a financial case, especially when you crunch the numbers.

A Mint story earlier estimated that a parent spends roughly 25-50 lakh on a child's school education, depending on the type of school they select. Higher education costs are even higher.

Radhika Gupta, managing director (MD) and chief executive officer (CEO) of Edelweiss Mutual Fund, said that she aims to build a 10 crore corpus for her son's higher education in the next 20 years.

Deepak Shenoy, founder and CEO of Capitalmind, said that in today's terms, he needs 2.4 crore for his son's education in the US. His son still has four years left before starting college.

According to Mint's calculation, it will take roughly 58.2 lakh (in today's time) to take care of a newborn's basic expenses, and later schooling and higher education. If parents plan a higher education in the US, it can increase to nearly 3 crore.

The calculation assumes the current price and future costs can be significantly higher after accounting for inflation.

"Not having to deal with a child's education expenses, marriage, and all other costs means achieving their retirement income becomes easy," said Abhishek Kumar, a registered investment advisor (RIA) and founder of Sahaj Money.

But how do you translate this financial headroom into a stable, secure retirement? Two options stand out: Joint life annuity and reverse mortgage.