Please note, the agent will insist you buy these products at a younger age.
But, this traditional insurance statement may not work in this case.
If you are younger, say 35, the value of Rs 1 crore will go down further to Rs 18.42 lakh by the time you retire.
"Further, if these two individuals were to live for 10 years after retirement, the value of Rs 9212 will become Rs 4683. That means a constant income of Rs 50000 a month cannot take care of you all life, as inflation would continue in the economy," says Mumbai-based certified financial planner Pankaj Mathpal.
Suppose a 35-year-old and a 45-year-old have monthly household expenses of Rs 20000 each.
Assuming both would live till the age of 80 years and the rate of inflation would stay at seven per cent. The amount of Rs 20000 will be equal to Rs 1 lakh in the case of the 35-year old and Rs 55000 for the 45-year-old.