Start retirement planning early to build a stronger corpus through compounding.
Financial independence enables people to work by choice, not financial necessity.
Discipline, diversification and tax-efficient investments can strengthen long-term retirement wealth.
Retirement planning should focus on achieving financial independence, allowing people to pursue their passions without having to work solely for money, said Amit Kukreja, Founder, Amit Kukreja Advisory, Certified Financial Planner CM (FPSB) and SEBI-registered Investment Adviser, at the Retire Smart: Financial Wellness Leadership Series, powered by the Pension Fund Regulatory and Development Authority (PFRDA) and Outlook Money, in Gurugram on August 22, 2026.
Kukreja highlighted gaps in retirement preparedness identified through recent surveys conducted alongside financial wellness sessions. He said over 75 per cent of Indians lack an in-depth view of their retirement, both in terms of financial readiness and healthcare. He added that over 60 per cent do not begin considering retirement planning until the age of 35, while more than 50 per cent are unaware of the tax efficiency of contributions towards the National Pension System (NPS).
Kukreja illustrated the importance of starting early with a 20-year investment scenario. If a person’s current lifestyle costs Rs 1.5 lakh a month, he said the individual would need to accumulate around Rs 5.5 crore by the age of 45. For a lifestyle costing Rs 2.5 lakh a month, the required corpus would rise to around Rs 9 crore.
These calculations assume an 11 per cent growth rate over 20 years. Based on the illustration, accumulating Rs 5.5 crore would require an investment of around Rs 75,000 a month, while the Rs 9 crore target would require around Rs 1.25 lakh a month.
However, Kukreja said these figures should not discourage investors who cannot immediately invest such amounts, as their income can increase over time. “Life does not hold like an Excel sheet. At the same time, your salaries will also increase,” he said, adding that people could start with Rs 20,000 or Rs 25,000 and gradually increase their investments as their salaries rise.
Kukreja said the larger objective of retirement planning should be financial independence, allowing people to eventually work because they want to rather than because they need the income.
“I am a big advocate of financial independence,” he said. “I want my countrymen to retire, in other words, not to work for money by the age of 40.”
He said reaching financial independence could allow people to pursue their passions, contribute to society, work with NGOs or pursue their own ventures. Kukreja added that with careful planning, people could build a sufficient corpus by the age of 45 and use their time for activities beyond earning a salary.
He also urged younger investors to start working towards their financial independence early. “The sooner you start paying attention to your financial independence number, the healthier it is going to be because it will create a magical retirement phase for you,” he said.
Kukreja identified stability, growth and discipline as key elements of a retirement portfolio, with discipline being non-negotiable. He said investors should divide their savings between retirement and near-term goals such as marriage, buying a car, purchasing a house or lifestyle upgrades.
He also highlighted NPS as part of a retirement portfolio, while clarifying that he was not calling it the best product. “I don’t want to say that NPS is the best product, but NPS is definitely one of my favourite products,” he said.
According to Kukreja, investors can combine products to get stability from fixed-income investments while also gaining exposure to growth assets. He highlighted NPS for its asset allocation options, tax efficiency and the ability to choose pension fund managers.
Kukreja also explained how staying invested for longer can amplify the effect of compounding. Citing the Rule of 72, he said an investment earning 12 per cent annually could theoretically double in around six years.
Using his illustration, he said a Rs 9 crore corpus left invested at the age of 45 could become Rs 18 crore by 51 and potentially double again by 57, assuming a 12 per cent return and no withdrawals.
He said the combination of disciplined investing, tax efficiency and exposure to equity markets could help investors build long-term wealth, while starting later would require significantly higher monthly contributions.
