Retirement Corpus Target Rs 5 Crore: What should be your monthly SIP investment to achieve this financial goal in 10, 20, and 30 years?
Retirement Corpus Planning: Starting retirement planning early has its own benefits. If one starts investing early, they can achieve their financial goal in the long run with a significantly smaller investment compared to the amount required if they start late.
How to achieve Rs 5 crore corpus, retirement planning, power of compounding: When you calculate retirement corpus, it should be based on the liabilities you have at the retirement age plus monthly expenses that you require to live your post-retirement life. The second thing is that you need to ask yourself if you have some retirement age in mind or if you want to retire as soon as you achieve financial freedom. Then another factor that you should take into account is inflation. If we consider 6 per cent annual inflation as a benchmark, your inflation-adjusted retirement corpus should be enough to bear your expenses in post-retirement life. If these factors are clear in your mind, then you should know what your investment amount should be, investment tools, and alternative income sources that can help you accomplish that goal.
In retirement planning, early starters have an edge over late starters. E.g., if a person invests Rs 10,000 for 30 years and gets a 12 per cent annualised return on it, the estimated corpus will be Rs 3,08,09,732 on a Rs 36,00,000 investment, but if the same person invests Rs 30,000 a month for 15 years, their investment will be Rs 54,00,000, but the corpus will be Rs 1,42,77,942. In this write-up, we will tell you about the monthly investment to achieve a Rs 5 crore retirement corpus if your yearly annualised returns on investment are 12 per cent, 13 per cent, 14 per cent, and 15 per cent, respectively.
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Investment to reach Rs 5 cr corpus goal in 10 years at 12% growth
The estimated monthly investment to reach a Rs 5 crore corpus in such a condition should be Rs 2,25,000.
In 10 years, the contribution will be Rs 2,70,00,000, estimated long term capital gains will be Rs 2,34,08,075, and the expected amount will be Rs 5,04,08,075.
Investment to reach Rs 5 cr corpus goal in 10 years at 13% growth
The estimated monthly contribution at 13 per cent annualised growth will be Rs 2,12,000.
The invested amount will be Rs 2,54,40,000, estimated long term capital gains will be Rs 2,46,57,958, and the estimated retirement corpus will be Rs 5,00,97,958.
Investment to reach Rs 5 cr corpus goal in 10 years at 14% growth
The estimated monthly contribution at 14 per cent annualised growth will be Rs 2,00,600.
The invested amount will be Rs 2,40,72,000, estimated long term capital gains will be Rs 2,59,36,040, and the estimated retirement corpus will be Rs 5,00,08,040.
Investment to reach Rs 5 cr corpus goal in 10 years at 15% growth
The estimated monthly contribution at 15 per cent annualised growth will be Rs 1,90,150.
The invested amount will be Rs 2,28,18,000, estimated long term capital gains will be Rs 2,71,94,908, and the estimated retirement corpus will be Rs 5,00,12,908.
Investment to reach Rs 5 cr corpus goal in 20 years at 12% growth
The estimated monthly contribution at 12 per cent annualised growth will be Rs 54,400.
The invested amount will be Rs 1,30,56,000, estimated long term capital gains will be Rs 3,69,84,240, and the estimated retirement corpus will be Rs 5,00,40,240.
Investment to reach Rs 5 cr corpus goal in 20 years at 13% growth
The estimated monthly contribution at 13 per cent annualised growth will be Rs 48,150.
The invested amount will be Rs 1,15,56,000, estimated long term capital gains will be Rs 3,84,47,061, and the estimated retirement corpus will be Rs 5,00,03,061.
Investment to reach Rs 5 cr corpus goal in 20 years at 14% growth
The estimated monthly contribution at 14 per cent annualised growth will be Rs 42,610.
The invested amount will be Rs 1,02,26,400, estimated long term capital gains will be Rs 3,97,75,333, and the estimated retirement corpus will be Rs 5,00,01,733.
Investment to reach Rs 5 cr corpus goal in 20 years at 15% growth
The estimated monthly contribution at 15 per cent annualised growth will be Rs 37,680.
The invested amount will be Rs 90,43,200, estimated long term capital gains will be Rs 4,09,60,927, and the estimated retirement corpus will be Rs 5,00,04,127.
Investment to reach Rs 5 cr corpus goal in 30 years at 12% growth
The estimated monthly contribution at 12 per cent annualised growth will be Rs 16,250.
The invested amount will be Rs 58,50,000, estimated long term capital gains will be Rs 4,42,15,815, and the estimated retirement corpus will be Rs 5,00,65,815.
Investment to reach Rs 5 cr corpus goal in 30 years at 13% growth
The estimated monthly contribution at 12 per cent annualised growth will be Rs 13,295.
The invested amount will be Rs 47,86,200, estimated long term capital gains will be Rs 47,86,200, and the estimated retirement corpus will be Rs 5,00,09,395.
Investment to reach Rs 5 cr corpus goal in 30 years at 14% growth
The estimated monthly contribution at 12 per cent annualised growth will be Rs 10,875.
The invested amount will be Rs 39,15,000, estimated long term capital gains will be Rs 4,61,05,874, and the estimated retirement corpus will be Rs 5,00,20,874.
Investment to reach Rs 5 cr corpus goal in 30 years at 15% growth
The estimated monthly contribution at 12 per cent annualised growth will be Rs 8,880.
The invested amount will be Rs 31,96,800, estimated long term capital gains will be Rs 4,68,13,321, and the estimated retirement corpus will be Rs 5,00,10,121.