From Rs 25,000 Monthly SIP to Rs 10 crore corpus; in how many years, you can achieve this retirement financial goal? Know Here
Planning for retirement at an early age can be a smart move but it requires consistency and a disciplined approach. People often lose patience and give up in mid of investments. If you want to create a sizeable corpus to unlock financial freedom post retirement, you have to stay consistent with your investments.
There is an old saying, “Failing to plan is planning to fail” It means without a plan you are likely to end up failing. Similarly, when it comes to retirement planning, prior planning can help you save time and money. As retirement is unavoidable, therefore there is no harm in planning for it at the earliest. This way you can ensure financial stability post retirement and lead a stress-free life. In this article, we will find out what should be your monthly investment in a systematic investment plan (SIP) to generate a retirement corpus of Rs 10 crore.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
Concept of retirement planning
Retirement planning prepares an individual to lead a comfortable life post retirement. Retirement planning is necessary for a person in a job or doing their own business.
Why is it important to plan for retirement?
Retirement planning is important to maintain a standard of living and to avoid depending on others for financial support.
Is there an ideal time to start retirement planning?
There is no ideal time to start retirement planning. One can start planning for their retirement at any age. Their investment amount can be in proportion to their monthly income. But starting early can help your money grow in the long run with the benefit of the power of compounding.
How to invest in retirement corpus through SIP
Individuals can plan to invest in a retirement scheme by investing through a systematic investment plan (SIP) in a mutual fund(s) scheme, which will let them build wealth in the long run.
How to plan your retirement?
One can set retirement goals
Individuals should determine their financial situation
Investors should choose a suitable retirement plan
How much should one invest monthly in SIP to retire with Rs 10 crore corpus?
One should invest Rs 25,000 in monthly SIP to build a retirement corpus of Rs 10 crore till the age of 56.
How soon one can achieve Rs 10 crore retirement corpus at 12 per cent annualised return with Rs 25,000 monthly SIP?
If you start investing at the age of 25, it will approximately take 31 years for investors to build a retirement corpus of Rs 10 crore with a monthly SIP of Rs 25,000.
What will be your retirement corpus in 10 years with Rs 25,000 monthly SIP at 12 per cent annualised return?
In 10 years, the investment amount during that time will be Rs 30,00,000. The estimated capital gains will be Rs 28,08,477, and the estimated retirement corpus will be Rs 58,08,477.
What will be your retirement corpus in 20 years with Rs 25,000 monthly SIP?
The invested amount during that period will be Rs 60,00,000. The estimated capital gains will be Rs 1,89,78,698, and the estimated retirement corpus will be Rs 2,49,78,698.
What will be your retirement corpus in 31 years with Rs 25,000 monthly SIP?
The estimated retirement corpus will be Rs 9,97,60,113. During that time, the invested amount will be Rs 93,00,000, and the estimated capital gains will be Rs 9,04,60,113.