best ways for pension corpus

POSTED BY sada ON November 24, 2010 4:02 pm COMMENTS (4)

Hi guys,

I am 37yr old. I want to create corpus for my retirement. How much i may need  and what is the best way. my salary is 24 lks per year. Advice please.

Thanks in advance


4 replies on this article “best ways for pension corpus”

  1. shashank kashettiwar says:

    Till what age you want continue working. Have you planned any specific retirement age or even multiple ages where you would like to retire?

    See there are many paths of reaching there. What Ramesh is showing is just one of the paths. But what he has said about insurance and contingency fund, I agree in toto.

    I may keep on asking for more info so that if not all, many alternative paths could be brought into the focus.


    P.S. some shocking sentences as food for thought!!!!

    1) Continue WHATEVER you are doing presently (I even don’t know it) you will reach the goal comfortably.

    2) Why are you even planning for something which has already been done for you by your parents and which they will be leaving for you in the form of legacy!

    3) You would be able to achieve it even if you keep your savings in debt assets or in a ‘savings a/c’, why even the savings a/c, even if you keep the savings under your bed still you can achieve the goal, IF YOU UNDERSTAND THE ROLE OF YOUR HUMAN CAPITAL and FOCUSS MORE ON YOUR HUMAN CAPITAL.

    1. sada says:


      If everything works well, I can see retirement at 52 to 57 years i.e. around 15 to 20 yrs time frame. I have insurance of 60lk (pure term policy of 50lks and sum assured in my son’s young star policy). contingency around 2lks.(this is purely in savings account).
      I want to know how much i need to put in each basket on regular basis as monthly SIP?
      Is this information is sufficient?

      Food for thought….choacking
      Thanks and regards,

  2. Ramesh Mangal says:

    For above 15 year horizons, you should consider a >80% allocation to equity. Save 30-40% of your pay. Have adequate insurance and contingency funds.
    Invest in Large cap, Mid-small cap and Multi-cap categories. One or 2 in each group.
    Regularly invest without trying to time the markets. Can do SIPs or quarterly lumpsums, whatever is comfortable?
    NO to all fancy products/complicated products/capital-protection/structured products, etc.

    At retirement, no need to change much. Bring down the equity part to 50-70% by changing over to hybrid funds (mix of equity and debt oriented). Whatever amount you require, redeem those much units.
    What amount you need? Of your retirement corpus, you should not need more than 4-5% per year (that means your corpus should be 20-25 times your yearly requirement).

    1. sada says:

      Thankyou for advice

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