1. Retirement Corpus and Savings Progress (25 points)

This is the backbone of your entire plan. Have you actually calculated how much corpus you will need, or are you just saving and hoping for the best? A realistic target factors in your expected monthly expenses after retirement, inflation over the years remaining, your life expectancy and any other income you might receive, such as a pension. Review this number every year because your goals and circumstances change.

2. Regular Retirement Investments (10 points)

Showing up consistently usually beats trying to time the market. For Indian investors, the common building blocks include the Employee Provident Fund (EPF), Public Provident Fund (PPF), National Pension System (NPS), and equity or hybrid mutual fund SIPs.

Keep in mind that NPS is a market linked scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA), so its returns are not fixed or guaranteed. A simple habit that pays off well is raising your SIP or contribution amount every time your salary increases.

3. Emergency and Liquidity Reserve (10 points)

An emergency fund exists so that a medical bill or a job loss does not force you to break your retirement investments early. Salaried individuals are generally advised to keep three to six months of essential expenses in an accessible account, while self employed individuals should aim higher, closer to six to twelve months, since their income tends to be less predictable. The right number for you also depends on your job stability, dependents and existing insurance cover.

4. Debt and Cash Flow (10 points)

Debt sitting on your shoulders while you are trying to save for retirement can quietly derail your plan. Take stock of personal loans, credit card dues, vehicle loans and your home loan. Credit card debt deserves special attention because interest rates in India typically range from around 30 percent to 48 percent per year, among the most expensive forms of borrowing available. You do not need to close every loan overnight, but clearing high cost debt should sit near the top of your priority list.

5. Health Insurance and Medical Planning (10 points)

Healthcare tends to be one of the biggest expenses people underestimate in retirement. Check whether your health insurance cover is adequate on its own, not just as an add on to your employer’s policy, since that cover disappears the day you leave your job. Look closely at the hospital network, waiting periods and exclusions in your policy, and factor in medical inflation when deciding on your cover amount. A critical illness policy can add a useful layer of protection, but it should sit alongside comprehensive health insurance rather than replace it.

6. Investment Diversification (10 points)

Diversification is not about owning ten different mutual funds. It is about spreading your money across asset classes that behave differently from each other, so a fall in one does not wipe out your entire portfolio. A well balanced mix could include equity mutual funds, debt instruments, fixed deposits, PPF, EPF, NPS, bonds and gold. The exact split depends on your age, your comfort with risk and how many years remain until you actually retire.

7. Retirement Income Strategy (10 points)

Retirement planning does not stop the day you stop working. In fact, that is when it shifts gears completely, from accumulating wealth to generating a steady income from it. Common income sources include pension payouts, rental income, interest income, dividends, annuities, Systematic Withdrawal Plans (SWPs) and part time consulting work.

It helps to remember that an SWP is simply a withdrawal method, not a guaranteed pension. How long your money lasts through an SWP depends on market performance, inflation and the rate at which you withdraw.

8. Tax Planning (5 points)

Smart tax planning can quietly boost your usable retirement income. Understand how withdrawals from your different accounts get taxed, how capital gains apply to your investments and which deductions you are eligible for under the current rules. Since India shifted to the new tax regime as the default option from FY 2023-24 onward, it is worth reviewing which regime actually suits your retirement income structure better. Tax rules change fairly often, so avoid making investment decisions purely to save tax, and check in with a qualified tax professional when things get complicated.

9. Estate Planning (5 points)

This is the part most people keep postponing. A proper estate plan means having a valid Will, updated nominations across all your accounts, clearly listed beneficiaries and organised asset records that your family can actually find. Do not assume a nomination automatically overrides your Will or the applicable succession laws, because in many cases it does not. If your estate involves multiple properties or complex family arrangements, get proper legal advice.

10. Retirement Lifestyle Planning (5 points)

Money is only half the picture. Think about where you want to live, how much you want to travel, the hobbies you want to pursue and any family responsibilities you will still be carrying. Your desired retirement age and expected monthly lifestyle expenses directly shape how large a corpus you actually need, so this is not a step you can skip.