Planning for retirement has become an essential part of personal finance. With rising life expectancy and changing job patterns, many people now aim to build a financial cushion that can support them for decades after they stop working.
One commonly used benchmark is a retirement corpus of around Rs 5 crore. Using standard financial planning assumptions, here is a breakdown of how much you must invest monthly to build a corpus of Rs 5 crore if you start at ages 25, 30 or 35.
One of the ways many build long-term wealth is through SIPs (Systematic Investment Plans) in mutual funds.
What Is An SIP?
An SIP is a way of investing in mutual funds by putting in a fixed amount of money at regular intervals, most commonly every month. Instead of saving a large sum and investing it all at once, an SIP allows you to build wealth gradually through smaller, consistent contributions.
The amount you choose is automatically deducted from your bank account and invested into the mutual fund scheme you select. Over time, the returns earned on your investment also start generating additional returns, a process known as compounding.
Retirement Age
For most people in India, the retirement age is considered to be 60. To find your investment duration, subtract your current age from 60.
Age 25 means 35 years left
Age 30 means 30 years left
Age 35 means 25 years left
These years determine how long your SIP can grow.
How Much To Invest Based On Age (Assuming 13% Returns)
Age 25 - 35 Years To Invest
Required SIP: Rs 7,200 per month
Total investment over 35 years: Rs 30,24,000
Projected capital gains: Rs 4,74,73,141
Total at 60: Rs 5,04,97,141
Age 30 - 30 Years To Invest
Required SIP: Rs 13,300 per month
Total investment over 30 years: Rs 47,88,000
Projected capital gains: Rs 4,52,40,203
Total at 60: Rs 5,00,28,203
Age 35 - 25 Years To Invest
Required SIP: Rs 25,100 per month
Total investment over 25 years: Rs 75,30,000
Projected capital gains: Rs 4,25,81,609
Total at 60: Rs 5,01,11,609
Beginning at 25 instead of 35 reduces the monthly requirement by more than half. Long-term equity SIPs are often used by investors to target 10-12% annual returns, as referenced across major financial advisories. The investment amount increases sharply when the time horizon shortens.
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