Agreed that Rs 1 crore is a lot of money. And, you may believe it can take care of all of your and your family's needs.
As of today, may be. But, if you are to retire after 10 years or more, this may not be true.
Say, you are 45.
Assuming you will retire at the age of 60, that would be 15 years later.
Let's say the rate of inflation will stay at seven per cent through these years.
When you turn 60, the value of Rs 1 crore would come down to Rs 36.24 lakh.
If the inflation rate were to increase to 10 per cent or more in these years, the value would go down further.
The monthly pension of Rs 50000 will also not be equal to Rs 50000.
At retirement, Rs 50000 will be equal to Rs 9212 for a 35-year-old and Rs 18122 a month for a 45-year-old.
You might think it would make sense to buy these products for someone retiring anytime in the next five years. However, that won't be possible.
Image: No need to talk pension with him, Big B indeed has enough and more.