Retirement Planning via SIP: With Rs 15,000 monthly savings, in how many years can you create a Rs 8 crore corpus?
Let’s find out how long it will take to build Rs 8 crore retirement corpus by investing Rs 15,000 in a monthly systematic investment plan (SIP).
Retirement planning is an important step in securing financial independence for the future. If you aim to build an Rs 8 crore corpus, then saving Rs 15,000 monthly can set you on the right path. The time it takes to build such a large amount depends on factors like disciplined and consistent investment, and the power of compounding. Therefore, let’s understand the impact of consistent investing and annual returns. We will also find out how many years it will take to reach your target.
Photos source: Pixabay/Retirement
(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 a plan that one does for a good life after they are done working for a full-time job. To create a retirement plan, one should begin by determining their long-term financial goals and risk appetite. Starting investing earlier would be better than starting late.
Retirement planning through monthly SIP
A systematic investment plan (SIP) enables investors to build wealth over time by investing a fixed amount at regular intervals such as daily, weekly, monthly, half-yearly, or yearly. Investors can adjust their investment amounts based on their finances. They can also stop or restart their SIP if they so choose.
Benefits of retirement planning
Financial security
Regular income
Emergency fund
When should you start retirement planning?
The ideal time to start planning for retirement is as early as possible. Starting early gives you the advantage of more compounding compared to when you begin your investment journey late. However, if you have not started early, it is never too late to begin.
Why is retirement planning important?
Nobody can predict what is going to happen tomorrow. In such situations, it is best to stay ahead of time, and a retirement plan allows you to do exactly that.
How much will you earn in 34 years with Rs 15,000 monthly SIP?
Expected Return Rate: 12 per cent
Time Period: 34 years
Total Invested Amount: Rs 61,20,000
Estimated capital gains: Rs 8,01,72,808
Estimated retirement corpus after 34 Years: Rs 8,62,92,808
Let’s understand calculations.
What will be your retirement corpus in 10 years with Rs 15,000 SIP at 12 per cent annualised return?
In 10 years, the estimated corpus will be Rs 34,85,086. During this time, the invested amount will be approximately Rs 18,00,000 and the estimated capital gains will be Rs 16,85,086.
What will be your retirement corpus in 20 years with Rs 15,000 SIP at 12 per cent annualised return?
In 20 years, the estimated corpus will be Rs 1,49,87,219. During this time, the invested amount will be approximately Rs 36,00,000 and the estimated capital gains will be Rs 1,13,87,219.
What will be your retirement corpus in 30 years with Rs 15,000 SIP at 12 per cent annualised return?
In 30 years, the estimated corpus will be Rs 5,29,48,707. During this time, the invested amount will be approximately Rs 54,00,000 and the estimated capital gains will be Rs 4,75,48,707.
What will be your retirement corpus in 34 years with Rs 15,000 SIP at 12 per cent annualised return?
In 34 years, the estimated corpus will be Rs 8,62,92,808. During this time, the invested amount will be approximately Rs 61,20,000 and the estimated capital gains will be Rs 8,01,72,808.