23/02/2026
GOLDEN RULES FOR RETIREMENT
1. Invest 10% of your monthly income for your retirement exclusively, and increase this investment as your income grows.
2. Don’t dip into this retirement corpus before retiring, and withdraw only 4% a year from the corpus in the first 5 years after retirement.
3. Increase it up to 8% gradually by the time you are 70, and upto 10% when you're 80.
4. Save 20 times your annual expenses for your retirement corpus, which should be able to replace about 85% of your pre-retirement income.
5. Borrow for kids’ education if needed, but save for your retirement, as a bank may give an education loan for their higher studies, but will never lend you for your own retirement.
6. Allocate 100 minus your age for investing in equity assets at all times till your retirement, with the rest being in fixed income and other assets.
7. Start saving early in life, because If you delay investing for your retirement, you will have to amass more to reach the desired corpus and yet end up poorer.
TIP
1. Assuming returns of 8.5% a year and investment age till 60 years of age, you can amass 2400 times wealth, if you start investing a fixed amount every month at 25 years of age.
2. On the other hand, you will accumulate only 350 times wealth, even if you start investing 3 times of this amount every month at 45 years of age.
