Retirement Planning in 30s: How many years it will take to achieve Rs 4 crore corpus with Rs 12,000, Rs 18,000 and Rs 20,000 monthly investments?
Planning for retirement in your 30s? Let’s find out how long it will take to build a Rs 4 crore corpus with monthly investment in a systematic investment plan (SIP).
Starting your retirement planning in your 30s is a smart move, as it gives you enough time to take advantage of the power of compounding and build a sizeable corpus. A target of Rs 4 crore may seem challenging, but with a disciplined approach and consistent investments, it can become achievable. In this article, we’ll explore how long it might take to reach this target corpus through a systematic investment plan (SIP). The time it takes to reach this goal depends on factors like your investment amount, expected returns, and consistency. Understand it with the help of calculations.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is retirement planning?
Retirement planning is the process of setting financial goals and creating a strategy to ensure you have enough money to sustain your lifestyle after you stop working.
Why start planning in your 30s?
Time is on your Side: Longer investment horizons allow your money to grow in the long run due to compounding.
Flexibility in investments: You can start with smaller amounts and gradually increase your contributions as your income grows.
Reduced financial stress later: Early planning ensures you don’t need to invest aggressively in your 40s or 50s to catch up.
How to build Rs 4 crore corpus?
To calculate how long it will take to achieve Rs 4 crore, we will do the calculation on the following basis:
Investment type: SIPs (Systematic Investment Plans)
Expected return: 12 per cent annualised return
Investment amounts: Rs 12,000, Rs 15,000, Rs 20,000
How investment duration varies based on monthly SIP amount?
Rs 12,000 monthly SIP - At 12 per cent annualised return, it will take approximately 28 years to build a Rs 4 crore corpus.
Start early, and you can reach this target by early 60s.
Rs 18,000 monthly SIP
With the same return rate, it will take around 27 years to achieve Rs 4 crore.
By slightly increasing your SIP, you save years and reach your goal faster. This means if you start investing at the age of 30, you can achieve the target of Rs 4 crore retirement corpus by the time you reach 57.
Rs 20,000 monthly SIP
With the same annualised return, it will take around 26 years to achieve Rs 4 crore.
If you start investing at the age of 30, you can achieve the target of Rs 4 crore retirement corpus by the time you reach 56.
Retirement planning calculations
Target corpus: Rs 4 crore
Annualised return: 12 per cent
Monthly SIP: Rs 12,000, Rs 18,000, Rs 20,000
From Rs 12,000 monthly SIP to Rs 4 crore corpus
The investment amount during that time will be Rs 43,20,000. The estimated capital gains will be Rs 3,80,38,965, and the estimated retirement corpus will be Rs 4,23,58,965.
From Rs 18,000 monthly SIP to Rs 4 crore corpus
The investment amount will be Rs 58,32,000. The estimated capital gains will be Rs 3,80,29,252, and the estimated retirement corpus will be Rs 4,38,61,252.
From Rs 20,000 monthly SIP to Rs 4 crore corpus
The investment amount will be Rs 62,40,000. The estimated capital gains will be Rs 3,67,82,241, and the estimated retirement corpus will be Rs 4,30,22,241.