Retirement corpus target depends on lifestyle, says Edelweiss CEO

Edelweiss Mutual Fund MD and CEO Radhika Gupta has said that a large retirement corpus like Rs 40 crore is not necessary for everyone, and the required amount depends on an individual's expenses and lifestyle. She advised that people should first calculate their post-retirement expenses, considering inflation and lifestyle changes, and that the target varies per person.

Gupta gave examples: in an expensive city like Mumbai, someone with a fully paid house can retire comfortably with a corpus of Rs 5-7 crore. For a Delhi family with a own home but children yet to start earning, a portfolio of Rs 7-8 crore by age 60 can be adequate. She stressed that these are not fixed targets for everyone.

Gupta also recommended starting investments early, even with as little as Rs 100 in mutual funds, and following a 10-30-50 formula: invest 10% of post-tax income in your 20s, 30% in your 30s, and 50% in your 40s. She said investing is a habit and discipline, not about chasing a single large number.