Retirement Planning: Building Freedom on Purpose

Estimate the target corpus

List today’s monthly expenses, strip work-related costs, add healthcare buffer, then inflate to retirement age. A simple rule of thumb is 25× annual retirement expenses (about a 4% withdrawal rate). It is a starting point — stress-test lower returns and higher longevity.

Use EPF and NPS as anchors

EPF offers compulsory savings and employer contribution for many salaried employees. NPS adds market-linked retirement investing with limited liquidity. Treat both as core pillars, then fill the gap with mutual fund SIPs.

Glide path matters

In your 20s–30s, equity-heavy allocation can make sense for long horizons. As retirement approaches, gradually raise debt allocation so a market crash does not force lifestyle cuts. Revisit the plan after every major salary change.

• Increase SIPs with every raise (pay-yourself-first).
• Keep a separate health insurance strategy — medical costs rise faster than general inflation.
• Avoid raiding retirement accounts for discretionary spends.