MYTH-37. I DON'T NEED MORE MONEY AS EXPENSES WILL REDUCE ON RETIRING


1. This may be true if you plan to live the life of a hermit after retirement.

2. But if you intend to maintain your lifestyle in retirement, you may have to spend almost as much in your retirement years as in your working ones.

3. There may be a decline in expenses like: rent, loan payments, work-related costs such as commuting and clothing, taxes and expenses on children.

4. But expenses that may rise are: travel, medical care, insurance, servant, house-related expenses, social obligations and leisure activities.

5. If you withdraw Rs.10 lakh a year to maintain your lifestyle in retirement, Rs.1 crore retirement corpus saved in bank fixed deposits will last you only 18 years, and if you have extravagant tastes, it will last just 5 years.