NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Miscellaneous Aspects of Retirement Planning
Mrs. Iyer, 58, wants to retire at 60 and needs Rs 6,00,000 for first-year expenses at retirement (in retirement-date rupees). She assumes a post-retirement real return that makes the required corpus equal to 25 times the first-year expense. What corpus is needed at 60?
The required corpus is Rs 1.5 crore. With the corpus needed equal to 25 times first-year expenses, multiplying Rs 6,00,000 by 25 gives Rs 1,50,00,000 at age 60. The other figures use multiples that are not specified in the case.
- ARs 1,25,00,000
- BRs 1,50,00,000Correct
- CRs 1,80,00,000
- DRs 2,50,00,000
Explanation
Corpus = 25 x 6,00,000 = Rs 1,50,00,000. Rs 1,25,00,000 uses 20.8 times, Rs 2,50,00,000 uses 41.7 times, and Rs 1,80,00,000 uses 30 times, none of which matches the stated multiple.
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