Rs 80 lakh FDs for retirement: Not enough for 5 years, diversify now.

• A 50-year-old with Rs 80 lakh in FDs aiming to retire in 5 years will likely face a significant shortfall, as Rs 1.83 crore is needed to sustain Rs 80,000 monthly expenses (due to 6% inflation) for 20 years.
• Fixed deposits (FDs) are insufficient for retirement; Rs 80 lakh grows to only Rs 1.13 crore in 5 years, leaving a deficit of over Rs 70 lakh against the required corpus, as post-tax FD returns barely outpace inflation.
• Experts recommend diversifying beyond FDs into a balanced portfolio of equity mutual funds and debt/bonds, targeting 9-11% returns to bridge the retirement corpus gap.
• To sustain the corpus, a 3-4% annual withdrawal rate is advised, along with a bucket strategy: immediate expenses in FDs/liquid funds, medium-term in hybrid funds, and long-term in equity/hybrid funds.
• Contingency planning is crucial, including an emergency fund (3-6 months' expenses) and comprehensive health insurance (family floater, super top-up) to protect the retirement corpus from unforeseen events.

Why It Matters: It shows why FDs alone won't secure your retirement.