Is Rs 1 crore enough for your retirement? This question is best answered with the old saying “more the merrier”. A greater amount of something is always better. This holds good even for your retirement corpus. While planning your cash flow strategy for the later years, you need to ask yourself if you are creating enough to last a lifetime? Will your money work for you over the next few decades? To be sure that you won’t run out of money, it’s best to retire with more than you actually need.

Do you have a dream lifestyle that you want to live after retirement? All of us do! Living your sunset years the way you like involves planning for it much in advance and saving enough. The primary aspect of retirement planning is to think long term and to start immediately. The precise amount that you aim to save depends on your lifestyle.

Here are a few points why more the merrier is the way to go while building your retirement corpus:

1. Value for Money

Due to inflation, over time the purchasing power of money decreases, therefore making money less valuable. The target of Rs 1 crore or any other desired amount could be short of expectation if you do not consider the rising inflation. The target should be inflation or purchasing power index adjusted. Working towards a bigger number for retirement corpus ensures you have enough relevant money for a sustainable retirement living.

2. Change in Lifestyle

Your lifestyle today might be drastically different from when you are 60. Though you may be happy with Rs 1 crore at your current expenses, your requirements and needs might be significantly different over the years. Always consider changes in lifestyle while planning your retirement corpus.

3. Be prepared for surprises

As you age, health issues might arise without a warning. Plan for your medical expenses and health insurance well in advance. One should consider investing in health insurance early on. As one grows older, insurance becomes more expensive. So, it’s important to invest early to avail the best price. If you don’t have a medical insurance, you may encounter an unforeseen risk or depreciation in the retirement corpus value.

4. Ability to earn

As you grow older, your incoming earning ability tends to decrease. It’s better to aim for more early on to avoid shortfalls. One should start for retirement planning as soon as one starts to earn, this is the simplest method to build a large corpus without stress. Most people who don’t plan and save early on, will have scramble to save for retirement closer to retirement age. They will find it challenging to meet the targets due to limited time.

5. Stress-free retirement

Retirement marks the beginning of a new stage of life. If you have saved more than what you need, this period can be truly stress-free. All of us want to enjoy our retirement with things that make us happy. Traveling, spending, giving back to society through charity, funding interesting ideas, pursuing lost hobbies and a lot more can be a reality when you have saved more for retirement. One can enjoy stress-free retirement without compromising on basic needs and necessities.