Watch out for higher cost of living while planning for future.

If a family currently spends Rs20,000 per month on expenses, the illustration in the chart gives a projection of expenses after 5, 10,15, 20 years which equates to current expenses. For eg., If I spend Rs 20,000/month, after 20 years I would probably need Rs.1,92,000 to meet the same expenses at an assumed inflation of 12%. And remember in a high growth economy like India, the inflation tends to stay at higher levels, as in the case of other growth oriented economies. One can safely assume that the spiking inflationary trends to stay on for a longer period in India.