Please read the earlier parts for continuity.
We have already seen the effect of pension on the salaries and if we look in to the pension contribution one has to make the difference will further narrow down.
I just checked from a retirement planner ( with the return of 12 % and inflation at 5% ) about the savings towards retirement to earn the pension at the rate of Rs 1.50 lakhs every month ( 1.50 lakh * 12 = 18.00 lakhs) till life which is the pension receivable by the employee if he had remained in the Govt service, in the same post with no promotion or increment. The pension amount of Rs. 1.50 lakhs per month (after 30 years) was arrived based on the salary increase at annual average of 10 % as per the past pay commissions which was also discussed in earlier articles.
My retirement planner...
Money, I need every year after I retire (Rs)
1,800,000
My age today (years)
30
I would like to retire at (years)
60
Period I have with me to plan my retirement (years)
30
The expected rate of return on my savings (%)
12.00
My assumed inflation rate (%)
5.00
Results...
To meet your annual expenses before you retire you need to save (Rs)
64,829,136
Every year, you need to save (Rs)
268630
The contribution will be Rs 2.70 per annum and if you subtract the sum from the pay package offered by the company and taking into account the pay out of Rs 1.75 lakhs the net will be 1000000 – (270000 + 175000) = 550000 and the magical figure of Rs 10.00 lakhs has been reduced to Rs 5 .50 lakhs. So, the difference which was Rs. 6.00 lakhs earlier has come down to Rs 1.50 lakhs than your present salary Hence , it is always desirable to verify all the factors before taking any decision.
If you are first time reader, go through all the earlier articles for better understanding . I request your comments.
We have already seen the effect of pension on the salaries and if we look in to the pension contribution one has to make the difference will further narrow down.
I just checked from a retirement planner ( with the return of 12 % and inflation at 5% ) about the savings towards retirement to earn the pension at the rate of Rs 1.50 lakhs every month ( 1.50 lakh * 12 = 18.00 lakhs) till life which is the pension receivable by the employee if he had remained in the Govt service, in the same post with no promotion or increment. The pension amount of Rs. 1.50 lakhs per month (after 30 years) was arrived based on the salary increase at annual average of 10 % as per the past pay commissions which was also discussed in earlier articles.
My retirement planner...
Money, I need every year after I retire (Rs)
1,800,000
My age today (years)
30
I would like to retire at (years)
60
Period I have with me to plan my retirement (years)
30
The expected rate of return on my savings (%)
12.00
My assumed inflation rate (%)
5.00
Results...
To meet your annual expenses before you retire you need to save (Rs)
64,829,136
Every year, you need to save (Rs)
268630
The contribution will be Rs 2.70 per annum and if you subtract the sum from the pay package offered by the company and taking into account the pay out of Rs 1.75 lakhs the net will be 1000000 – (270000 + 175000) = 550000 and the magical figure of Rs 10.00 lakhs has been reduced to Rs 5 .50 lakhs. So, the difference which was Rs. 6.00 lakhs earlier has come down to Rs 1.50 lakhs than your present salary Hence , it is always desirable to verify all the factors before taking any decision.
If you are first time reader, go through all the earlier articles for better understanding . I request your comments.
Posts
No comments:
Post a Comment