Rs 80 Lakh FD Insufficient for Retirement: Diversify to Cover Rs 1 Cr Gap

• An 80 lakh FD is insufficient for retirement in five years, potentially leading to a shortfall of over Rs 1 crore due to inflation and low post-tax returns.
• A corpus of Rs 1.83 crore is needed to cover Rs 80,000 monthly expenses for 20 years, while Rs 80 lakh only meets 44-46% of this requirement.
• Diversify investments into a balanced portfolio of equity mutual funds and debt/bonds, targeting 9-11% returns, to bridge the retirement corpus gap.
• Maintain the corpus by withdrawing only 3-4% annually and employing a bucket strategy with FDs/liquid funds for short-term, hybrid funds for medium-term, and equity/hybrid for long-term growth.
• Secure retirement by building an emergency fund (3-6 months expenses) and obtaining comprehensive health insurance to mitigate unexpected financial challenges.

Why It Matters: Relying solely on FDs for retirement risks a huge shortfall due to inflation.