Plan Assumptions

Calculations and projections provided in the financial plan are based on the following assumptions:

Inflation considered at the rate of 6 per cent per annum (both pre- and post-retirement) Education goals have been inflated at 10 per cent per annum

Return of 7 per cent per annum considered post-retirement

Real estate growth rate is considered at 8 per cent Life expectancy is assumed to be 85 years for Yadav and 90 years for his wife Riya

The retirement corpus has been calculated to provide for all expenses from 2050 onwards

It is assumed that Yadav will receive pension income after retirement at 50 per cent of the last-drawn basic pay (assumed to be 50 per cent of the net take-home income)

Pension income is assumed to grow at an average of 1 per cent per annum

All values taken as income, expenses and assets are current values

It is assumed that home loan will be available at

9 per cent in 2021 and taken for 15 years. EMI works out to be around Rs 5,520

It is also assumed that the couple will have a moderate risk-taking ability for which we suggest that 50 per cent of the portfolio should be invested in growth assets and 50 per cent in stable assets Savings refers to the funds accumulated through investments and includes monthly net savings, as sumed to be invested with post-tax returns of 9.5 per cent per annum

Income growth taken at 5 per cent per annum till retirement

Returns assumed for PPF – 7 per cent