Retirement Planning: How long it will take to build Rs 6 crore corpus with Rs 10,000 monthly investment?
Let’s understand how your Rs 10,000 monthly investment can grow into Rs 6 crore retirement corpus. Here, we will also understand how disciplined and consistent investing can help one reach their target goal, and the time required to achieve their financial goals through a systematic investment plan (SIP).
Planning for retirement requires a clear financial goal and a disciplined investment strategy. If your target is to build Rs 6 crore retirement corpus, then starting with a monthly investment of Rs 10,000 can set you on the right path. Achieving this goal depends on factors like the investment duration, expected rate of return, and consistency. With the power of compounding, even small monthly contributions can grow potentially over time. In this article, we’ll discuss how long it will take to reach this target and learn about retirement planning.
Photos source: Pixabay/Representational
(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 determining financial goals for your retirement years and taking steps to achieve them.
Steps to retirement planning
It involves estimating future expenses, identifying income sources, and implementing strategies to save and invest effectively during your working years.
What is systematic investment plan (SIP)?
SIP is a way of investing in mutual funds, where you can invest a fixed amount of money at regular intervals - daily, weekly, monthly, half-yearly, or yearly.
Retirement planning through monthly SIP
A systematic investment plan (SIP) enables investors to build retirement corpus by investing a fixed amount regularly. Investors can adjust their investment amounts based on their finances.
Retirement Planning: Calculation conditions
Here, we will do the calculation of Rs 10,000 monthly SIP at 12 per cent annualised return. So, if you are starting investment at the age of 25, through calculation we will find out at what age you will be able to achieve your target corpus or how long it will take one to achieve their goal.
What will be your corpus in 10 years with Rs 10,000 monthly SIP at 12 per cent annualised return?
The estimated corpus will be Rs 23,23,391. During that time, the invested amount will be around Rs 12,00,000, and the estimated capital gains will be Rs 11,23,391.
What will be your corpus in 20 years with Rs 10,000 monthly SIP?
The estimated corpus will be Rs 99,91,479. During that time, the invested amount will be around Rs 24,00,000, and the estimated capital gains will be Rs 75,91,479.
What will be your corpus in 30 years with Rs 10,000 monthly SIP?
The estimated corpus will be Rs 3,52,99,138. During that time, the invested amount will be around Rs 36,00,000, and the estimated capital gains will be Rs 3,16,99,138.
What will be your retirement corpus in 35 years with Rs 10,000 monthly SIP?
The estimated retirement corpus will be Rs 6,49,52,691. During that time, the invested amount will be around Rs 42,00,000, and the estimated capital gains will be Rs 6,07,52,691.
How long it will take to achieve the target of Rs 6 crore retirement corpus?
If one starts investing Rs 10,000 at the age of 25, by the time they reach their retirement age of 60. They can create a potential retirement corpus by that time.