Retirement Practice Questions

Saloni, aged 40, is a working professional. Her present household expenses are Rs. 50,000 per month. How much amount will she be requiring every month at her age of 60 years if inflation is 7.25% p.a. for this entire period? Assume she is investing all her savings in bank deposit yielding 8.75% p.a.

Azim, aged 30 years, wishes to retire at 55. If his present monthly expenses are Rs. 50,000 and life expectancy is 75 years, calculate the additional corpus required in case he lives longer by 5 years than his life expectancy. Assume inflation to be 7.5% p.a.

Ramesh, aged 45, is working in a multinational company. His present annual expenses are Rs. 3,00,000. He plans to retire at 60. Inflation is expected to be 7.5% p.a. and Ramesh expects 10% p.a. return on his investments during retirement years. Assuming Ramesh will require 80% of his expenses on retirement, calculate the corpus required by him to fund his post retirement needs if his life expectancy is 75 years.

Neeru, aged 30, saves Rs. 15,000 every year in a Debt Mutual Fund earning 9.25% p.a. compounding annually until she retires at 60. Her life expectancy is 80 year. What will be the corpus on retirement in case she keeps investing in similar way till retirement? Assuming inflation to be 6% p.a.

Deepanshu, aged 44, is working in ABC Ltd. His present annual expenses are Rs. 3,00,000. He plans to retire at 58. If inflation is expected to be 8% p.a. and he expects 10% p.a. return on his investments, calculate the corpus required by him to fund his post retirement needs if his life expectancy is 73 years.

An individual has purchased a house worth Rs. 40 lakhs for self-occupation by availing a housing loan of Rs. 28 lakhs at 9.25% p.a. rate of interest. The tenure of the loan is 18 years. He also has Rs. 12 lakh financial assets at present. Further, he is expected to save Rs. 50,000 on quarterly basis, beginning a quarter from now, in an instrument which is expected to provide a return of 9% p.a. What would be his net worth five years from now? Assume that the value of this house is not considered in the net worth to be calculated.

Narendra, aged 30 years, wishes to retire at 60. He starts investing Rs. 10,000 every month for his retirement. Assume an average annual return of 12% on these investments during the accumulation period. On retirement he plans to withdraw his entire corpus and invest in a fixed deposit yielding 6.3% p.a. post inflation. In case his life expectancy is 75 years, calculate the allowable monthly withdrawals by him from the corpus.

Rakesh, aged 35 years, wishes to retire at 60. She starts an investment of Rs. 12,000 every month for building her retirement corpus. Assume an average annual return of 12% for her on these investments during the accumulation period. On retirement she plans to withdraw her entire corpus and invest in a fixed deposit yielding 5% p.a. post inflation. In case her life expectancy is 75 years, calculate the allowable monthly withdrawals by Jyoti from this corpus.

Manish, aged 35 is planning to invest Rs. 6,000 every month, now onwards, for his retirement scheduled 25 years hence. How much would he have invested, every month, had he started 10 years earlier, to achieve the same corpus? Assume his investments yield a return of 12% p.a. and inflation is 7% p.a.

Mr. Satish who is 30 years old spends annually Rs. 4.5 lakh towards his household expenses. He expects to retire at 60 years. During this period inflation is expected to be on an average 6% p.a. He wants to cover 25 years living expenses for self and spouse post retirement. If the inflation in the post-retirement period moderates to an average of 5% p.a. and he expects to generate a return of 9% from his accumulated corpus .What corpus should he target for a comfortable retirement?

Mohit, aged 30 years, wishes to retire at 60. He starts investing Rs. 10000 every month for his retirement. Assume an average annual return of 12% on these investments during the accumulation period. On retirement he plans to withdraw his entire corpus and invest in a fixed deposit yielding 6.3% p.a. post inflation. In case his life expectancy is 75 years, calculate the allowable monthly withdrawals by him from the corpus.

Aman wants to accumulate money to buy a car worth Rs. 12.5 lakhs after 5 years. He wishes to invest money at the beginning of every quarter for the first 3 years and he cannot save any more money after that. Calculate the amount of saving required every quarter if the rate of return on investments is 12.5% compounding quarterly.

Bharat, aged 40 years, wishes to retire at 55. If his present monthly expenses are Rs. 80,000 and life expectancy is 75 years, calculate the additional corpus required in case he lives longer by 10 years than his expectancy. Assume inflation to be 7% p.a. and return on investments post retirement to be 11% p.a.

Jayant, aged 30, works with ABC Ltd. His present monthly expenses are Rs. 25,000. He plans to retire at 60. If inflation is expected to be 7% p.a. and he expects 10% p.a. return on his investments, calculate the corpus required by him to fund his post retirement needs. If his life expectancy is 75 years.

Gopal contributes Rs. 3,000 per month towards his retirement. His employer matches the same contribution. He intends to retire in 30 years. He has chosen investments that will generate a return of 10% compounding annually. Based on this information, Gopal should have retirement corpus of____

In the above question, if Gopal retires 5 years earlier then calculate the difference in accumulated corpus.

Jyoti, aged 35 years, wishes to retire at 60. She starts an investment of Rs. 12,000 every month for building her retirement corpus. Assume an average annual return of 12% for her on these investments during the accumulation period. On retirement she plans to withdraw her entire corpus and invest in a fixed deposit yielding 5% p.a. post inflation. In case her life expectancy is 75 years, calculate the allowable monthly withdrawals by Jyoti from this corpus.