India considers private cars for ridesharing
to leave the entire corpus to your kids, the same annual expense will need a corpus of ₹2.1 crore. If you plan to leave half your corpus, then you are targeting a corpus of around ₹1.5 crore. The younger you are today, the larger will be the corpus in the future, but the multiplier remains the same. You can inflate your current annual expense at an inflation rate of 6% to arrive at what you will be spending when you are 60 and then use the multiplier to see the face of your corpus. Hope it scares you into starting to invest right away.
How should you use this rule of thumb? First, remember that this is a rule of thumb. This means that it is a crude approximation of what you will actually need. For instance, if you plan to work beyond 60, then the corpus needed will shrink. If you have other sources of post retirement income, say rental income, then the corpus needed is less. Remember that we are assuming a return of 8% in retirement. If you are too conservative and think you can do just 7%, this will double your corpus requirement to 70 times annual expenses if you want to leave the money for the kids. Just a difference of 1% in the expected return can reduce the burden on your present self. So it is a good idea to understand safe investing and give an equity exposure to your money.
Whatever method you use, the retirement corpus is a large number. The faster you start targeting it the better it is. Don’t wait to get a large monthly surplus to begin. Begin with what you can and then keep topping it up. But start now.
India is examining the use of private vehicles as shared taxis in an effort to reduce car ownership and curb growing traffic congestion in major cities, sources familiar with the matter told Reuters.
Niti Aayog has partnered with companies including ride-sharing firm Uber Technologies to assess the economic and environmental impact of using private cars as taxis, a government official involved in the process said.
Increasing the availability of cars that can be used as cabs would be welcome news for Uber and its SoftBank backed local rival Ola, although it could heighten tensions with taxi operators that typically pay higher fees for commercial licences while facing more rigorous vehicle testing.
The government wants to reduce private car ownership, the official said, adding the threemonth study will look at the safety, regulatory, tax and insurance implications.
Although Uber is allowed to use private cars for ride sharing in countries such as Australia and Singapore, their use has faced opposition from taxi operators in parts of North America.
An Uber spokesman said sharing private vehicles can help cut congestion and ensure more efficient use of cars. “We are engaging with stakeholders about the best way to realise this vision.”