An HSBC report found that only 33% of Indians save regularly for retirement, and nearly 68% of the working age population expect their children to support them in their retirement..
You can estimate your retirement needs very roughly, using a few simple steps. Let's suppose you currently earn INCOME (approximately INCOMEAFTER TAX after tax). You plan to retire aged 65. You are fit and healthy. Several members of your family lived into their nineties, so you might need an income for as many as thirty years. Your pension/retirement goal is:
(INCOME AFTER TAX x 2/3) = (INCOME AFTER TAX x 30 years) = SAVINGS GOAL
[Current salary after tax x 0.66 x Number of years = Savings goal]
(Remember that you can subtract the income from at least one state or government sponsored pension/retirement income over the same period.)
Please note: The calculation is meant for illustration purposes only and it should not be construed as promise or advise.
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