With Below Figures, You Would Understand that It Is Important to Start at Younger Age, Else It will be Difficult to Reach the Target. The More You Delay the Start of Your Investments for Retirement; The More Chances That You Will Not Be able to Meet Your Target Corpus.
The Advice About Starting Early Has a Very Good Reason. The Magic of Compounding Works only When there is Time at Hand. The More Time You have on Hand, More Compounding Will Work for You. If You Wish to Accumulate Rs.23 Crore for Your Retirement, See Below for How Much You Will Need to Invest.
| TARGET | Rs.23 Cr | ||
| Retirement Age | 55 | ||
| Assumed Rate of Return | 12% | ||
| Starting Age | No. of Yrs. Sip | Approx. pm Saving Required | Approx. Total Savings for Full Term |
| 25 | 30 | Rs. 75,000 | Rs. 2.70 Cr. |
| 30 | 25 | Rs. 150000 | Rs. 4.50 Cr. |
| 35 | 20 | Rs. 250000 | Rs. 6 Cr. |
| 40 | 15 | Rs. 500000 | Rs. 9 Cr. |
| 45 | 10 | Rs. 1050000 | Rs. 12.36 Cr. |
| 50 | 5 | Rs.2850000 | Rs. 17.10 Cr. |
Usually in the Initial Years of the Career People Spent in Deprecating Assets (Car, Furniture, Foreign Trips, etc). Without Knowing the Effect of Long-Term Power of Compounding a Car Purchase Worth 10 Lakhs at Age 25 Will be Zero Value at Age 55. But If Invested in Equity Mutual Funds Can Create Corpus of 3 Cr @ 12% Cagr. Saving a Small Amount Right Since the Beginning of our Earning Years Will Not Hurt Your Spending Patterns, But It Will Surely Create a Wonderful Support for Your Later Years. Saving Just Rs.75,000 P.M Can Get You to a Corpus of Rs.23 Crore* If You Start Early. (* At 12% Cagr for 30 Years)
