₹80 Lakh FD Not Enough for 5-Year Retirement: Experts Advise Diversification

• An ₹80 lakh FD is insufficient for retirement in 5 years for a 50-year-old, primarily due to 6% inflation and taxes, covering only 45% of estimated needs.
• Experts state that ₹1.83 crore is needed to cover 20 years of retirement expenses, as current FDs yield only 0.47% after tax and inflation.
• Diversifying investments into equity, debt, and hybrid funds (aiming for 9-11% returns) is recommended to meet retirement goals, as FDs deplete quickly.
• A 'bucket strategy' is advised: FDs/liquid funds for 0-5 years, hybrid funds for 5-10 years, and equity/hybrid funds for 10+ years.
• Essential buffers include a 3-6 month emergency fund, comprehensive health insurance, and critical illness cover to mitigate unforeseen risks.

Why It Matters: It warns that ₹80 lakh FD is likely insufficient for a secure retirement.