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How to Build a Solid Retirement Plan in India

A Step-by-Step Guide by Bhangadiya Wealth

Planning for retirement is one of the most crucial aspects of personal finance, yet it is often delayed or overlooked by many. In India, where financial awareness is still growing and pension schemes are limited for private-sector employees, having a retirement plan is not just wise—it’s essential.

At Bhangadiya Wealth, a trusted financial advisory firm based in Jaipur, Rajasthan, we specialize in helping individuals design retirement plans that align with their lifestyle goals, financial standing, and life expectancy. In this blog, we walk you through a complete step-by-step guide to retirement planning tailored specifically for the Indian context.

Why Retirement Planning is a Must in India

India lacks a formal pension system for the majority of the population. While government employees may have access to pensions, private sector employees need to plan their retirement independently.

Key reasons why retirement planning is essential in India:

Inflation: The cost of living continues to rise. What ?50,000 covers today may only cover basic expenses 20 years later.
Increased life expectancy: With advances in healthcare, people are living longer. Your retirement corpus needs to last 25–30 years.
Lack of social security: Unlike Western countries, India does not have a universal social safety net.

Step 1: Define Your Retirement Goals

Before jumping into numbers, first ask:

At what age do you want to retire?
What kind of lifestyle do you envision?
Will you have any dependents or liabilities post-retirement?

These questions help us at Bhangadiya Wealth determine the target corpus you’ll need.

Step 2: Estimate Your Retirement Corpus

Your retirement corpus should cover:

Monthly living expenses
Medical costs
Travel and lifestyle activities
Emergency buffer

Let’s say you currently spend ?50,000/month. Assuming an average inflation rate of 6%, that amount could be over ?1.5 lakh/month in 25 years.

We use inflation-adjusted calculators to project the future value of expenses and help you arrive at an accurate retirement target.

Step 3: Choose the Right Investment Mix

There is no one-size-fits-all when it comes to retirement investments. At Bhangadiya Wealth, we typically divide your retirement strategy into three phases:

A. Accumulation Phase (20s–40s):

Focus on growth through SIP in equity mutual funds, NPS (National Pension Scheme), and ELSS.
Diversify with mid-cap, index, and international funds for long-term returns.
Aim to invest at least 20–30% of your income monthly.

B. Consolidation Phase (40s–50s):

Begin shifting 20–30% of your portfolio into safer options like debt funds or hybrid mutual funds.
Consider PPF and low-risk corporate bonds.

C. Distribution Phase (Post 60):

Prioritize capital protection and regular income.
Invest in Senior Citizen Saving Schemes (SCSS), annuity plans, or monthly income plans (MIPs).
Keep a portion liquid for emergencies.

Step 4: Start Early, Benefit More

The power of compounding is most effective when you start early. A person who starts investing ?5,000/month at age 25 will accumulate far more than someone who starts at 35—even if the latter invests double the amount.

?? A delay of 10 years can reduce your retirement corpus by over 40%.

Step 5: Account for Medical and Health Costs

Healthcare is becoming more expensive in India. A robust retirement plan must include:

Health insurance with critical illness cover
A separate medical emergency fund
Consider long-term care plans as an add-on

We help clients choose health insurance plans tailored for senior citizens, with tax benefits under Section 80D.

Step 6: Monitor and Rebalance Your Portfolio

Life changes—so should your financial plan. We review our clients' retirement portfolios every year to adjust for:

Changes in income
Market performance
Tax laws
Family needs

We also help consolidate and simplify assets as you approach retirement for easier management.

Step 7: Plan for Legacy and Succession

Retirement planning doesn’t stop at income—it should also involve estate planning:

Write a will
Appoint nominees
Consider setting up a trust if needed

Bhangadiya Wealth offers professional succession planning services to ensure your wealth is smoothly passed on to your loved ones.

Tools We Use at Bhangadiya Wealth

Retirement corpus calculators
SIP goal trackers
Risk profiling tools
Tax optimization reports
Health insurance comparison dashboard

These tools, combined with expert human advice, give you both automation and emotional intelligence in planning.

Real Client Example from Jaipur

Mr. Rajeev Sharma, a 40-year-old business owner in Jaipur, approached us with no retirement plan in place. After understanding his lifestyle needs, we started a ?25,000/month SIP, shifted his insurance portfolio to better plans, and restructured his real estate assets into liquid mutual fund holdings. Today, he is on track to retire at 60 with a ?3.2 crore inflation-adjusted retirement corpus.

Mistakes to Avoid in Retirement Planning

Underestimating inflation
Relying only on EPF or PPF
Not accounting for healthcare costs
Investing too conservatively at a young age
Not reviewing or adjusting the plan regularly

Conclusion

Retirement isn’t the end of your journey—it’s the beginning of a new chapter. With proper planning, discipline, and expert guidance, you can make sure it’s a chapter filled with peace, security, and freedom.

At Bhangadiya Wealth, we’re not just advisors—we’re your lifelong financial partners. Whether you're just starting your career or approaching retirement, we help you prepare today for a worry-free tomorrow.

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