Plan Assumptions
The calculations and projections provided in the plan are based on the following assumptions:
Portfolio returns during earning phase are set at 9 per cent per annum and during the retirement phase, at 7 per cent per annum
Rise in income is set at 8 per cent per annum without taking into account sudden spikes
Car upgrades have not been factored in
Retirement age: 60; life expectancy: 80 for both spouses and premiums for medical cover have been taken into consideration
Post-retirement expenses are calculated at 65 per cent of the present-day cost as certain costs related to the conveyance, lifestyle spending, contribution to dependent parents and daughter’s education will not be there.