By 2040, we will need minimum Rs 10 Lac per month for our Household expenses. The objective of this presentation is to spread awareness about the importance of retirement savings and create an urgency to act so that the salaried professionals can manage cash flows comfortably.
Most young professionals of this decade would be retiring (or will be forced to) by 2040. A quick look at how our monthly expenses have grown over the last century indicates that we will need a minimum of Rs 10 Lac per month just to manage our basic requirements like food, cloth and shelter by 2040.
Monthly Household expenses of an average Indian Household:
Year
Average household expenditure (monthly)
1920
Rs 1
1940
Rs 10
1960
Rs 100
1980
Rs 1000
2000
Rs 10000
2020
Rs 100000
2040
Rs 1000000 (estimated)
2060
???????
How are we going to get Rs 10 Lac a month every month post our retirement? While the figure looks scary, fortunately it can be managed, provided we have already started acting on it or at least start taking proactive action from now onwards.