Building a retirement corpus: How much should you invest at different life stages to build a corpus of Rs 4 crore; see examples

Planning a retirement corpus is a most crucial and time-consuming task. It is not easy for investor to start investing at the beginning of their career to build a retirement corpus. But it is worth it. Suppose as an investor you start to invest early and end up building a large amount post retirement, it will be an accomplishing moment. Therefore, let’s understand how much one should invest at different stages of life to build a corpus of Rs 4 crore.

What is retirement corpus?
A retirement corpus is the amount of money you will be saving up by the time you retire to support your living expenses. Building a retirement corpus is an important part of retirement planning and can help ensure financial security and independence during retirement.

How to invest for a good retirement corpus?
Start saving early
Make regular contributions
Invest wisely
Get professional help

How much an investor should invest at the age of 20 to build a retirement corpus of Rs 4 crore through a monthly systematic investment plan (SIP)?
If starting at the age of 20, investors need to invest a monthly SIP of Rs 3,370. It will take approximately 40 years for them to build a retirement corpus of Rs 4 core. 

How much an investor should invest at the age of 30 to build a retirement corpus of Rs 4 crore?
At the age of 30, investors need to invest a monthly SIP of Rs 11,335. It will take approximately 30 years for them to build a retirement corpus of Rs 4 core. 

How much an investor should invest at the age of 40 to build a retirement corpus of Rs 4 crore?
At the age of 40, investors need to invest a monthly SIP of Rs 40,040. It will take approximately 20 years for them to build a retirement corpus of Rs 4 core. 

Starting at age 20
Investment Tenure: 40 years
Target Corpus: Rs 4 crore
Assumed Rate of Return: 12% per annum
Invested amount: Rs 16,17,600
Estimated capital gains: Rs 3,84,26,156
Estimated retirement corpus: Rs 4,00,43,756

Starting at age 30
Investment Tenure: 30 years
Target Corpus: Rs 4 crore
Invested amount: Rs 40,80,600
Estimated capital gains: Rs 3,59,30,973
Estimated retirement corpus: Rs 4,00,11,573

Starting at age 40
Investment Tenure: 20 years
Target Corpus: Rs 4 crore
Invested amount: Rs 96,09,600
Estimated capital gains: Rs 3,03,96,283
Estimated retirement corpus: Rs 4,00,05,883

(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)