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Is Early Retirement At 50 Possible? Here’s The Savings Math
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Early retirement at 50 needs discipline, smart investing and a clear estimate of your future expenses. Compounding and diversification help build a strong long-term corpus.
To retire at 50, experts suggest multiplying annual expenses by 25–30 to find the ideal corpus.
Many people have a dream to stop 9-to-6 grind once and for all and take early retirement, typically after 50, when the body isn’t as fresh as in youth. But the task seems uphill, especially for the middle class, who are solely dependent on their monthly salary rather than a business.
Building a corpus isn’t rocket science. What it requires is financial discipline and self-control, while keeping focus on regular investment with a diversified portfolio, including equities, debt and gold and silver.
Compouding will work as magic wand to multiply your money, so you can build a substantial corpus that will be helpful in retirement.
Retiring at 50 means your money must last for the next 30–35 years, so estimating the right corpus is the first step, according to Ajay Kumar Yadav CFPCM, Group CEO & CIO , Wise Finserv.
So, How Can You Estimate A Right Corpus For You?
Yadav said that a practical way to do this to multiply one’s annual expenses by 25-30, based on the sustainable withdrawal rate of 3-4 per cent.
Giving an illustration, Yadav stated that if your current annual expense is 12 lakh, your ideal corpus should be 3 crore to 3.6 crore.
Inflation is the biggest money-eater and roadblocker in the pathway to building a good corpus. In simple terms, it reduces the purchasing power of the same amount over the time. For instance, what you can purchase with a note of Rs 100, you can’t do the same 5 year later.
Yadav explained that a monthly expense of 1 lakh grows to 1.34 lakh in five years at 6% inflation, raising annual expenses to 16.1 lakh. That lifts the required corpus to around 4 crore to 4.8 crore.
Other Assets As Important As Equities
Yadav underlined that equity is the main factor for compounding in the long term. However, he suggested, to still have a part of your investment in high-quality fixed-income allocations.
“They provide the investor with comfort, predictable cash flows and also help to maintain the discipline during the volatile phases,” he added.
Consider scenarios where equity returns stay flat, or markets go through multi-year volatility, Yadav underlined the importance of stress-testing for retirement plan. “. This exercise shows whether your corpus can truly last and whether you need to adjust spending, asset allocation, or risk levels.”
He recommended to add a contingency buffer of 10–15 %, setting up systematic withdrawals, and reviewing your plan annually can extend the life of your retirement money.
December 07, 2025, 12:47 IST
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The chief executive officer of the water company involved in a major supply issue in Kent should not resign as issues in the industry go “far wider than individual people”, a director has said.
South East Water (SEW) has issued a “boil water notice” for 24,000 homes in and around Tunbridge Wells who have experienced a loss of water or low pressure since November 29.
On Wednesday the company said the “water quality issues” which caused the initial shutdown had returned.
They have decided to continue pumping water so that people can flush their toilets and shower, but the water cannot be drunk without being boiled first.
Liberal Democrat MP Mike Martin told the BBC earlier this week that it had been “a total failure of leadership” and called for the chief executive of SEW, Dave Hinton, to resign.
Douglas Whitfield, SEW water supply director, said resignation demands “fundamentally misunderstand the challenges that we’ve been facing in this incident as a company over the last few years, as an industry going forward, I don’t think that’s helpful”.
He told BBC Radio Kent: “I would point you to the independent Water Commission that sets out the challenges the water industry are facing and the changes it needs to make.
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Mr Whitfield apologised to customers and said the precautionary boil notice was in place for 10 days because “public health is our key priority”.
But he said he was unable to guarantee the problem ensuring water quality would be solved within the 10 days as he was unable to provide a “definitive answer” as to why the water was not responding to normal treatment.
He said: “For the last 24 hours, the treatment process has actually been operating within all of the water quality parameters.
“Until we’re confident that we’ve resolved the issue and that it won’t reoccur, we’ll be working to keep that boil notice in place, until we are confident we can take it off.
“I can confirm all the water we supplied up to the point we put the boil notice on fully complied with all the regulations.”
Mr Whitfield apologised for “overly optimistic” messages put out to customers since the problem started but said this was “one of the most complex events that we’ve ever had”.
He added: “I can only apologise to the customers for the last week and the communications that we gave during the incident were on what we thought was going to happen at the time.
“The incident has changed from what we thought was happening at the weekend to a much longer, much more complicated issue that we’re trying to resolve.”
The Consumer Council for Water (CCW), an independent body representing water consumers across England and Wales, has called for a thorough investigation into the incident.
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Business
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