For some Retirement is the ugliest word in the language. ~Ernest Hemingway

Human Life CycleEducation Earning Years Phase I Phase II Phase III Age- 22 yrs Age- 60 yrs Marriage Child birth Child’s Education Child’s Marriage Housing 22 yrs 38 yrs yrs Post Retirement Years Life begins at retirement. ~Author Unknown

India is Growing Old ! As per Old Age Social and Income Security (OASIS) report Tremendous increase in population aged 60 & above 8.9% or Crores of total population in % or 17.9 Crores in years old today will be 60 in 2020: is expected to live till age is no more old now I'm retired — goodbye tension, hello pension!

Money The most important reason for working post- retirement Indians need the MOST Unless you own oil wells! Worldwide research shows Money as a leading reason for individual wanting to work in later years Indians and Russians are in top 2 Egypt and Saudi Arabia are in last 2 Worldwide Survey Overview Retirement can be a great joy if you can figure out how to spend time without spending money. ~Author Unknown

Government Can’t Afford Pension For All 1947 Total Population = 2047 Old Population By 2025, 17.5 Crores individuals will be aged above 60 years Rs per month of pension per person or Rs.1200 per annum = 17, 50,00,000*1200 = Rs.. 21,000 Crores

Earlier Scenario 40 Working years (age 20 to age 60) 10 Retirement years (age 60 to age 70) Age 20Age 60Age70  During working years savings were high  Life style was simple  Additional expenses like mobile cable etc.. were not there  Fuel expenses were less  Joint family  Pension  Savings A retired husband is often a wife's full-time job. ~Ella Harris

Today’s Scenario ……… principle 30 Working years (age 25 to age 55) 30 Retirement years (age 55 to age 85) Age 25Age 55 Age 85  During working years expenses are high  Life style maintenance cost  Additional expenses like mobile cable etc..  Fuel expenses are high  Savings are less  Nuclear Family  No Pension  High medical cost  High cost of living When a man retires, his wife gets twice the husband but only half the income. ~Chi Chi Rodriguez

Retirement: World's longest coffee break. ~Author Unknown

An ordinary father can support 4 extra ordinary children…………… But 4 extra ordinary children can’t support 1 ordinary father….

The best time to start thinking about your retirement is before the boss does. ~Author Unknown

The trouble with retirement is that you never get a day off. ~Abe Lemons

Accumlation phase Annuity phase 1/3 rd of the corpus can be commuted tax free and remaining amount used to purchase annuity from any annuity provider Tools for accumulation phase PPF EPF Gratuity NPS Pension plans of Life Insurance companies MF Schemes Annuity received is Taxable in the hands of the investor How a normal retirement plan works Retire from work, but not from life. ~M.K. Soni

Accumlation phase Annuity phase 1/3 rd of the corpus can be commuted tax free and remaining amount used to purchase annuity from any annuity provider Annuity received is Taxable in the hands of the investor Available annuity options Annuity for Life Joint Life last survivor annuity Annuity guarantee for certain periods Life annuity with return of purchase price Increasing annuity

Provident Fund (PF)  Pure debt portfolio leading to lower fixed returns. PF offers 8.75% per annum, at present. May vary depending on market conditions.  Lacks liquidity / flexibility. Investors would not be able to withdraw even in exigency New Pension Scheme  Choice of asset class, with maximum 50% equity during the accumulation phase  Upon reaching 60 years, maximum 60% can be withdrawn, with the remaining 40% to be taken as compulsory annuity from life insurance companies. Life Insurance Products – Offer annuity plans (also referred as pension plans)  Guaranteed but lower returns  Investments predominantly in debt  Return is typically around 7% to 8%, depending on whether investor wants money- back  Pension amount taxable  Lack of liquidity or flexibility. Once annuity starts, cannot withdraw amount under any circumstances. What are the current options available for Retirement?

Inflation assumed at 5%

Accumulation period Pension required on retirement would be Rs 1,29,658 pm increasing at 5 % pa Age 30Age 60 Age 85 Corpus required at age 60 to maintain post retirement expenses of Rs 1,29,658 would be Rs 2,28,05,232 Inflation has been assumed at 5% and post retirement returns at 10 %

Rs 1 Lakh invested in 1980…….A period of 34 years

Reliance Growth fund performance history 80 Times in just 19 years Source :

LUMP SUM Returns SIP Returns Reliance Growth fund performance contd….

When you retire, you switch bosses — from the one who hired you to the one who married you. ~Gene Perret

There are some who start their retirement long before they stop working. ~Robert Half

In retirement, every day is Boss Day and every day is Employee Appreciation Day. ~Terri Guillemets

Accumulation period SWP starts form age 60 Age 30 Age 60Age 35 Lock in of 5 years SWP starts from age 60 Withdrwal allowed with 1% exit load after 5 yrs 1 st in the industry with an option to accumulate retirement corpus through 10 % EQUITY Two options to invest Wealth creation scheme--- Equity oriented Income Generation--- Debt oriented

Additional Earnings by reinvesting the tax saved at 15 %

Accumlation phase Distribution phase SWP received is Tax-free ( equity option ) in the hands of the investor RRF advantage Option to withdraw tax free corpus Option of 100 % equity participation

RRF advantage contd..

One BIGG Leap and then BABY STEPS

Retirement Needs calculator Assumption : 5%,post retirement Life expectancy till 85