Do you think Rs 100 million would be sufficient for your
retirement and to accomplish your
financial goals after you leave work life? Don’t worry; you can easily achieve the target of accumulating Rs 100 million for retirement. With financial discipline, adequate income, and the right plan, you can get the desired
retirement corpus. Here are some important points that can guide you in building the Rs 100 Million Retirement Plan.
Decide The Size Of Investment According To Your Age And Return Expectation
As shown in the table, if you start investing early, you can comfortably build a Rs.100 Million Retirement Plan by investing as low as Rs 6,729 per month and assuming a return of 15 percent per annum. However, if you start the investment at a later age, you would need a greater
financial effort to build the desired retirement corpus.
Table:| Investment starting Age | Investment Required Per Month (Rs) for achieving Rs 100 Million Corpus |
| When Return @ 10% Pa | When Return @ 12% Pa | When Return @ 15% Pa |
| Age 25 | ₹26,121 | ₹15,395 | ₹6,729 |
| Age 30 | ₹43,873 | ₹28,329 | ₹14,266 |
| Age 35 | ₹74,745 | ₹52,697 | ₹30,450 |
| Age 40 | ₹1,30,600 | ₹1,00,085 | ₹65,965 |
Table only for illustration purposes.Focus On Incremental Saving
It is not necessary that you start the
investment with a larger amount; you can also start with a small amount every month and gradually increase the investment size with an increase in your income. The idea is to get yourself engaged in the investment process early in your career. It can help you get greater benefit of compounding because of a longer investment period, even if the investment size is smaller at the initial stage.
Take Adequate Risk At Every Stage In Your Life
You can choose the investment according to your risk appetite at different stages in your life. Ideally, you should try to take a higher risk when you are in the early stage, as you have fewer financial responsibilities and time to recover, even if things go wrong. Gradually, with increasing age, you can switch to a lower-risk investment. Depending on factors like your age at the time of investing, risk appetite, and investment capacity, you can choose the appropriate investment instrument that can get you closer to your planned retirement corpus.
The author is an independent financial journalist.
