₹80 Lakh FD for Retirement? Experts Advise Diversification.

• A 50-year-old with ₹80 lakh in FD planning to retire in 5 years with ₹60,000 monthly expenses faces a significant retirement fund shortfall.
• Due to 6% annual inflation, monthly expenses will rise, requiring a corpus of ₹1.83 crore for 20 years, far exceeding the current ₹80 lakh.
• Bank FDs offer low post-tax returns (around 4.5%), making the existing fund insufficient and likely to deplete by age 70.
• Experts recommend diversifying investments into balanced portfolios (equity MFs for growth, debt/bonds for stability) to achieve 9-11% annual returns.
• To ensure longevity of funds, annual withdrawals should be limited to 3-4%, and a "bucket strategy" can help manage different investment horizons.

Why It Matters: It warns that bank FDs are inadequate for retirement, urging diversified investments.