How much corpus amount will be needed if I’ve to retire at 45?
- ICICI Pru Life signature is a policy with no allocation charge and the policy administration charges and mortality charges are added to the funds value at the time of maturity
I am 31 years old and earn ₹1.3 lakh salary per month after taxes. I want to retire by the age of 45. My current cost of living is approximately ₹50,000 per month . I have been investing in public provident fund and National Pension Scheme. My savings as on date is ₹18 lakh. I also invest around ₹60,000 per month in mutual funds. How much corpus would be required if my retirement age is fixed at 45 and other factors such as inflation till the age of 85 years are taken into consideration?
— Anurag
Assuming you are going to maintain the current cost of living subject to inflation and continue saving at the current rate (it is good if you increase the saving rate as your income increases), you need to have a corpus of ₹4.25 crore to maintain similar standard of living. The investments you are doing are in order and you can continue with the same.
I had taken a ICICI Pru Signature policy (annual premium of ₹1.6 lakh annual premium) . I have five years to go before superannuation. Is this a worthwhile policy for retirement benefit or should I discontinue and opt for a systematic investment plan ?
— Murali M T
ICICI Pru Life signature is a policy with no allocation charge and the policy administration charges and mortality charges are added to the funds value at the time of maturity. This benefit does add value and makes it an attractive proposition.
However, any insurance plan—more so a unit-linked insurance plan (ULIP)— taken as an investment needs to be compared likewise to any other investment avenue and the performance of the same should be the primary factor in deciding whether to hold the investment or not. And as you are already invested in the product only last year, there is a minimum commitment you already have entered in with the policy, so it is good to do a comparison of the performance of the product over the long-term in deciding to continue or discontinue.
Surya Bhatia is managing partner of Asset Managers.
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First Published:21 Apr 2022, 10:46 PM IST
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