₹80 Lakh FD Retirement: Inflation & Tax Could Shatter Your Dream.

• A 50-year-old with ₹80 lakh in FD, spending ₹60k monthly, plans to retire in 5 years, but experts warn this won't last 20 years due to inflation and taxes.
• Inflation will increase monthly expenses to ₹80k in 5 years; FD's 6-7% interest becomes only 0.5% after tax, failing to counter rising costs.
• Experts advise diversifying investments beyond FD into debt funds, hybrid mutual funds, and some equity for 9-11% returns to combat inflation.
• Recommended strategies include monthly SIPs to cover gaps, withdrawing only 3-4% annually post-retirement, and using a "bucket plan" for phased investments.
• Crucially, maintain a 6-month emergency fund in liquid assets and secure family health and critical illness insurance to protect against unforeseen events.

Why It Matters: It warns how inflation and taxes erode retirement savings, urging diversified investments.