RETIREMENT PRACTICAL QUESTIONS

Mr. X who is 40 years old spends annually Rs. 7 lakhs towards his household expenses. He expects to retire at 62 years. During this period inflation is expected to be on an average 6% p.a. He wants to cover 35 years’ living expenses for self and spouse. If the inflation in the post-retirement period moderates to an average of 4% p.a. and he expects to generate a return of 7% from his accumulated corpus, what corpus should he target for a comfortable retirement?

Deepak, aged 35 years, is planning to retire at 55. His present monthly expenses are Rs. 75,000. Assuming inflation as 8% p.a. and return post retirement is 10%, life expectancy of 75 year, calculate the difference in retirement corpus if he delays his retirement by 5 years and retires at 60.

Mr. Ashok, aged 55 years is just 5 years away from retirement. His annual expense is estimated at Rs. 4 lakhs one year prior to retirement. His life expectancy is 25 years after retirement. Calculate monthly investment required to achieve his goal if he invests Rs. 39 lakhs as lump sum. Assume inflation is 6% and return of 9.5% p.a.

Shiva Ramesh received an inheritance of Rs. 2 lakhs. He wants to withdraw equal periodic payments at the beginning of each month for 10 years starting after 10 years. He expects to earn 12% annual interest compounding monthly on his investments. How much can be received each month?

Visnu, aged 45 years, plans to retire at 60 years. The present worth of his investments is Rs. 15 lakhs. His current monthly expenses are Rs. 50,000. He wants to cover 18 years post retirement expenses, inflation adjusted, by a suitable annuity. On retirement he will get Rs. 18 lakhs from his employer for leave encashment and other benefits. How much monthly payment should this annuity provide to sustain the same standard of living as he is enjoying now? Assume average inflation to be 7% p.a., annuity to yield 9% p.a. You advise him to invest his current investment at 10% p.a.

Divyansh needs an annuity of 35000 annual in current Valuation after 15 years for 15 years where discounting rate is 11% and inflation is 6%. He wants the cash flow in Begin Mode. What should be his investment today?

Someya needs an annuity of 40000 in current Valuation after 20 years for 15 years where discounting rate is 6% and inflation is 4%. He wants the cash flow in End Mode. What should be his investment today?

Dinesh needs an annuity of 15000 in current Valuation after 25 years for 20 years where investment rate is 8% and inflation is 3.5%. He wants the cash flow in Begin Mode. What should be his investment today?

Vedant needs an annuity of 25000 in current Valuation after 10 years for 20 years where investment rate is 9% and inflation is 4%. He wants the cash flow in Begin Mode. What should be his investment today?

Mohit, 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.

Sandeep is planning to purchase an annuity for Rs. 50 lakhs at an age of 60 years. He expects to survive till 85 years and contracts an immediate life annuity with return of purchase price at Rs. 4.5 lakh p.a. What is the yield on this annuity?

Sameer has an accumulated amount of Rs. 75 lakh at the time of his retirement and his household expenses are Rs. 2.40 lakh p.a. Sameer wishes to maintain the same standard of living after retirement. If inflation is 6.5% p.a. and interest on investment is 9% p.a, how long would this money last if he gives Rs 25 lakh to his son out of the accumulated amount?

Mohit won a lottery of Rs. 20 lakh. He wants to invest the same in a deferred annuity and expects to withdraw equal periodic payments at the beginning of each month for 20 years, starting after 15 years. He expects to earn 12% p.a. compounded annually on his investments. How much can he receive each month if he wants to leave an estate of Rs. 20 lakhs for his children?

For a nominal interest rate of 10% per annum compounded monthly and quarterly; the respective effective rate would be_______

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.

Amit plans to accumulate Rs. 75 lakhs in 25 years. If he invests Rs. 3,000 every month in an Equity Mutual Fund yielding return of 14% p.a. calculate the surplus/deficit amount in achieving the desired corpus. Assume inflation at 7.5% p.a. throughout.

Ram invested Rs. 40 lakhs in a 30-year fixed monthly annuity providing a yield of 9% p.a. What will be the amount of monthly annuity if the start date is deferred by 3 years?

Vivek invests Rs. 25 lakhs in a Gilt Fund yielding a return of 9.20% p.a. For how many years can he withdraw Rs. 2.50 lakhs p.a. as an annuity leaving Rs. 5 lakhs corpus for his grandchild? Assume he will make withdrawals at the beginning of every year.

Manish received an inheritance of Rs. 20 lakhs. He wants to withdraw equal periodic payments at the beginning of each month for 15 years starting after 5 years. He expects to earn 12% p.a. compounded monthly on his investments. How much can be received each month?

Find the present value of an annuity certain that pays Rs. 10,000 at the end of the year for next 12 years, Rs. 12,000 for next 10 years and Rs. 14,000 for last 10 years. Assume rate of interest to be 6% p.a. for 12 years and 5% p.a. for the last 20 years.

Calculate the present value of an immediate annuity of Rs. 1,000 payable quarterly for 8 years at the interest rate of 8% p.a.

Mr. Rohit deposited a sum of Rs. 25 lakhs in an annuity certain plan for 25 years providing a yield of 6% p.a. What would be the amount of annuity if he wishes to receive annual annuity payments?

Rahul Start investing with 20000 Rs Per annum which he will increase at the rate of 6% every year,If the investment is done for next 30 years at the rate of 10%,What will be the courpus accumulated ?

Vedant current Age is 32 and wishes to retire at 55. His current expenses are 60000 Rs and he wants to maintain same life style adjusting for 25 years post retirement.Post Retirement annuity will yield at 9%.What shall be the incremental amount of investment vedant must done for acheiving his goal if investemnt is done at 11% with increasing invstment at the rate of 7% every year. Inflation is 6% thoughout. ?

Mr. Rohit Current Age :- 32 , Wife’s Age : 27, Retirement Age : 55 , Life Expectency Rohit : 70 years and his wife 80 Years

Current Expenses are 70000 for which he requires only 75% of the expenses post retirement.If rate of investment is 9% and inflation is 6%.What will be the corpus required at the time of Retirement ?

Dashrath Current Age :- 30 , Wife’s Age : 27, Retirement Age : 60 , Life Expectency Rohit : 75 years and his wife 80 Years

Current Expenses are 45000 for which he requires full expenses till Husband survives and only 50% of the expenses post Death of husband till wife survives,If rate of investment is 8% and inflation is 5.5%.What will be the corpus required at the time of Retirement ?

Narayan Current Age :- 34 , Wife’s Age : 28, Retirement Age : 55 , Life Expectency Rohit : 75 years and his wife 80 Years

Current Expenses are 75000 for which he requires full expenses till Husband survives and only 60% of the expenses post Death of husband till wife survives,If rate of investment is 9% and inflation is 5.5%.What will be the corpus required at the time of Retirement ?

Pritesh wants to get retire at 55 where he wants 1 Crore rupees in today’s valuation at the time of retirement, His current age is 30 years. Before Retirement Inflation will be 8%, What increment amount he shall deposit in the beginning of the year at the rate of 9% Where inflation of increasing the previous amount will be 6%.

Vatsal is 32 years of age having life expectancy of 78 years, his wife is 28 years of age and having life expectancy of 70 years, He is planned to accumulate 50Lacs at the time of retirement at the age of 60
His Expenses at the time of retirement will be 250000 Annual, which will be reduced to half after his wife’s death.

What will be the money Vatsal has at the time of his wife’s departure? Inflation is 6% throughout Post retirement Returns are 9% ?

Suresh is 32 years of age and his wife is 27 years of age. Suresh will retire at the age of 55
His current Expenses are 65000 Per month. Life Expectancy of wife is 75 where Suresh Life expectancy is 70 years of age.

Post death of Suresh Only 50% of the expenses will be required till his wife’s death Suresh has already accumulated 10Lac for the goal. What shall be the additional per month investment to reach to goal of retirement planning of Suresh.

Inflation Pre retirement 6%
Inflation post retirement 4%
Return Post retirement 8%
Return Pre retirement 12%