Want to retire in 10 years? Here's how starting with Rs 25,000 monthly step up SIP, you can get chance to withdraw Rs 60,000 monthly pension for 30 years
Early Retirement Planning: Planning to retire early? But wondering how? This can be done with strategic planning and disciplined saving. Yes, it is possible to build substantial wealth in a specific time frame. Know how you can retire in just 10 years by investing Rs 25,000 every month. Learn the steps to build a Rs 84 lakh corpus using mutual fund investment through step-up SIP. Then learn how through a systematic withdrawal plan (SWP), you can enjoy a monthly pension of Rs 60,000 for 30 years and still have over a Rs 3 crore corpus. See the full calculation here:
Early Retirement Planning: Retirement planning is an important goal on the way to financial freedom, with many people aiming to retire at age 60 or even earlier. However, have you ever thought about the possibility of achieving your retirement goals in the next 10 years? If wondering how then this can be done with strategic planning and disciplined savings. It is possible to build substantial wealth in a specific time frame. Know how you can retire in just 10 years by investing Rs 25,000 a month.
How to plan for early retirement?
With careful planning and disciplined investing, you can achieve early retirement. Here’s how much you should invest each month to make this dream a reality.
Retire in next 10 years
To retire in 10 years, you need to estimate the duration of your retirement and the corpus required. For instance, if you're 40 and want to retire at 50 with a monthly pension of Rs 60,000, you’ll need a retirement corpus of around Rs 84 lakh.
Calculation
To build this corpus, start investing Rs 25,000 monthly in mutual funds through a Step Up SIP (Systematic Investment Plan), where you need to increase your investment amount by 10 per cent every year. With an average annual return of 12 per cent, you could accumulate an estimated corpus of about Rs 84,35,816 in 10 years.
How Systematic Withdrawal Plan (SWP) helps
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount regularly from your mutual fund investments, providing you with a steady income. By strategically investing in mutual funds and using an SWP, you can retire early and enjoy a comfortable life with a substantial pension.
How to get Rs 60,000 monthly pension
At age 50, with a corpus of Rs 84.35 lakh, you can begin your retirement. Assuming you wish to receive a Rs 60,000 monthly pension until age 80, you need to set up a SWP plan, where you can get 10 per cent annualised return. If you get that return, then even after withdrawing Rs 60,000 monthly pension for 30 years (till 80 years of age), you will still have approximately Rs 3.05 crore corpus.
Early retirement and secure pension
Thus, by investing Rs 25,000 per month, you can plan for an early retirement and secure a substantial pension.
Disclaimer
(Our calculations are projections. Do your due diligence or consult an expert for retirement planning.)