Start Retirement Planning in Your 40s with SIPs
28 Mar 2024
Get a HeadStart On Retirement Planning
As individuals navigate their 40s, retirement planning takes on heightened significance, with looming concerns such as home loans and education expenses demanding attention. Yet, amidst these immediate financial obligations, the inevitability of retirement often looms large. Amidst the myriad of investment options available, Systematic Investment Plans (SIPs) emerge as a beacon of stability and growth. With SIPs, investors can embark on a journey of consistent wealth accumulation, leveraging the power of disciplined investing and long-term compounding.
Early Bird Gets the Worm
For a broad idea on what a retirement plan should look like, observe how the three investors need to adjust for inflation to save for retirement at 60 years, via mutual fund SIPs.
| Particulars | Adarsh | Chaitanya | Raunak |
|---|---|---|---|
| Current Age | 30 | 35 | 40 |
| Life Expectancy | 85 | 85 | 85 |
| Expected Return on Inv. Pre-retirement | 12.5% | 12.5% | 12.5% |
| Expected Return on Inv. Post-retirement | 7.00% | 7.00% | 7.00% |
| Expected Inflation Rate (Pre & Post retirement)* | 6% | 6% | 6% |
| Current Monthly Expense | 1,00,000.00 | 1,00,000 | 1,00,000 |
| Retirement Corpus Needed | 14,38,60,320 | 12,08,85,405 | 9,03,69,140 |
| Monthly SIP needed | ₹ 36,815 | ₹ 52,371 | ₹ 85,375 |
Starting early reduces the future investment burden, leading to a smoother ride ahead. So, begin now for a more seamless journey in the future!
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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