Retirement Planning: Start monthly SIP of Rs 15,000 to accumulate Rs 10 crore at 60

Start Early

When it comes to building wealth, one golden rule never changes — the earlier you start, the easier it gets. Building a retirement corpus of Rs 10 crore might sound intimidating, but with discipline, smart planning, and patience, it’s achievable. The magic lies in compounding, and the consistency shows how much difference your starting age makes.

If you start investing through a Systematic Investment Plan (SIP) at the age of 25, you need to invest just Rs 15,000 per month to reach Rs 10 crore by age 60, assuming 12% annual returns. But if you wait until age 30, the required SIP almost doubles to Rs 28,000 per month. And if you delay further and begin only at age 40, you will need to pump in a whopping Rs 1,00,000 per month—that’s nearly six times more than starting at 25.

This is the price of procrastination. The longer you wait, the heavier the burden becomes.

Breaking down the target

Rs 10 crore at age 60 may feel like a big number, but let’s understand why it’s important. Most financial planners recommend withdrawing only about 3–3.5% of your corpus annually during retirement. That way, your money lasts as long as you do. So, if you have Rs 10 crore at 60 a 3% withdrawal gives you Rs 30 lakh per year (Rs 2.5 lakh per month). Similarly, a 3.5% withdrawal gives you Rs 35 lakh per year (Rs 2.9 lakh per month).

This income can comfortably cover living expenses, medical needs, and lifestyle choices without worrying about running out of money too soon. It is equally important to consider the impact of inflation on your money which also depends on how many years you are away from your retirement.

Why starting early works

The earlier you start, the more time compounding has to work for you. Compounding means your money earns returns, and those returns go on to earn further returns. It’s like planting a tree: the sooner you plant it, the stronger and bigger it grows over time.

For example, starting at Rs 15,000 a month at 25 may seem manageable. But by 40, finding Rs 1,00,000 every month to invest consistently is far tougher—especially when financial responsibilities like children’s education, home loans, or medical expenses kick in.

So the first step is to start with what you can. Even if Rs 15,000 is tough at 25, begin with Rs 5,000 or Rs 10,000. As your income rises, increase your SIP. Then increase SIPs annually as a  10% annual step-up in SIP amount can dramatically reduce the monthly burden. Moreover, stick to equity funds as equity has historically delivered higher long-term returns compared to other asset classes. For a 30–35 year horizon, equity mutual funds are the best bet.

Then keep reviewing. Markets fluctuate, but long-term investors benefit by staying disciplined. Avoid panic exits. Alongside investments, ensure you have adequate term insurance and health insurance to safeguard your financial plan.

Rs 10 crore is not an unrealistic number. It is simply the reward of discipline and patience. Start early, stay consistent, and let compounding do the heavy lifting. By the time you turn 60, you will have built a retirement corpus that ensures peace of mind, financial independence, and the ability to live life on your terms.