According to experts, if you are living the kind of life you are living today and you want that there should be no decline in it even in old age, then you should adopt the 30X rule. Know the details here.
Retirement Planning: Acharya Chanakya used to say that money is your true friend because it comes to your aid even when your own people leave you. This is the reason why money is called the support of old age. If you do not want to beg in front of anyone in old age, then start planning for retirement while you are still in a job. Now the question is how much money should you have for retirement so that your old age can be spent happily, know here what the rule says in this matter.
According to experts, if you are living a good life today and you want that there should be no shortage in it even in old age, then you should follow the 30X rule, that is, your retirement fund should be at least 30 times your annual expenditure today. For example, if your annual expenditure today is Rs 9,00,000, that is, every monthly expenditure is Rs 75,000, then according to the 30X rule, you should collect a retirement fund of Rs 9,00,000×30= Rs 2,70,00,000.
How to collect funds
To collect such a huge amount for old age, you will have to invest in long-term schemes that can give better returns. In today’s time, mutual funds are considered a very good scheme in terms of returns. You can invest in it through SIP. In SIP, you have to deposit a fixed amount every month. Its average return in the long term is considered to be 12%.
How much will have to be invested
If you are 30 years old and want to collect Rs 2,70,00,000, then you will have to run a SIP of at least Rs 7700 continuously for 30 years. In this case, at the age of 60, you will invest Rs 27,72,000. At the rate of 12 percent, you will get an interest of Rs 2,44,08,336 on it and by the time you are 60, you will have a total of Rs 2,71,80,336.
On the other hand, if you are 35 years old, then you will have to run a SIP of Rs 14,500 every month for at least 25 years. In 25 years, you will invest a total of Rs 43,50,000, at the rate of 12 percent, you will get an interest of Rs 2,31,65,709 on it and at the age of 60, you will get a total of Rs 2,75,15,709.
