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Retirement is one of those life events we all know is coming, yet many of us don’t plan for it until it’s too late. Some people feel they still have time, while others simply don’t know where to begin. But the truth is, the earlier you plan your retirement, the better and richer your golden years will be.
In simple words, retirement means a phase where you stop working and start depending on your savings, investments, or pension to live your life. That’s why planning well in advance is important, especially considering how fast costs are rising due to inflation.
Let’s break down how much money you need for retirement, how to calculate it based on your lifestyle, and what steps you should take to reach your financial goal.
When you’re young and earning, retirement feels like a distant dream. But life moves quickly. A time comes when there’s no regular income, yet your daily expenses—like food, medical costs, and housing—still continue.
Planning is not just about saving money—it’s about ensuring peace of mind.
This is the most important question—and the answer depends on many factors:
Let’s understand with an example.
Now, let’s calculate how much money you’ll need:
₹40,000 today will become around ₹2,30,000/month at age 60.
So, you’ll need around ₹7 crore at the time of retirement to live comfortably without compromising on lifestyle.
This may sound like a huge number now, but with consistent savings, investments, and planning, it is achievable.
The most important silent killer. ₹1 today won’t have the same value after 20–30 years. So, your savings should grow faster than inflation.
Due to better healthcare, people are now living longer. Your money should last till at least 85 years—or longer, if possible.
As you grow older, your medical expenses will increase. You should always have health insurance and a separate medical fund.
Do you plan to travel after retirement? Do you want to move to a quieter place? Your dreams and lifestyle will affect how much you’ll need.
Saving is not enough—you have to invest wisely. Here’s where you can put your money:
If you’re a salaried person, this is already being deducted from your salary. Keep track and avoid withdrawing it.
A safe, long-term government-backed scheme with tax benefits and compounding growth. Ideal for conservative investors.
An excellent tool for building a retirement corpus. It gives both equity and debt exposure and comes with tax benefits under Section 80CCD.
Systematic Investment Plans in mutual funds help you invest small amounts regularly and grow your corpus with market returns.
For higher returns, you can invest a portion in quality stocks with long-term growth potential. Be cautious and informed.
These are safer options to park your retirement corpus once you stop earning. Best for monthly interest income.
Let’s understand why starting early matters. Here’s how much you need to invest every month to reach ₹7 crore at 60:
| Starting Age | Monthly Investment (at 12% annual return) |
| Age 25 | ₹7,500 |
| Age 30 | ₹13,000 |
| Age 35 | ₹24,000 |
| Age 40 | ₹44,000 |
As you can see, delaying your planning even by 5 years almost doubles your investment need. So, starting early is your biggest advantage.
Many people fail to plan properly. Here are some common mistakes:
Avoiding these mistakes will help you stay on track and reach your financial goals without stress.
Retirement doesn’t mean the end of your earning life—it can be a fresh start. Many people turn their hobbies into income after retirement. Whether it’s writing, consulting, travelling, or teaching, retirement can be the most meaningful phase of your life.
But for that, you need money. A stress-free retirement comes with planning, discipline, and a clear goal.
You don’t have to be rich to retire rich—you just have to start early, invest wisely, and stay consistent.
