Retirement Planning: How Rs 10,000 monthly investment can generate Rs 5,00,00,000 corpus in long term
With time, discipline, and compounding, even small investments can create a massive corpus. Let’s find out how a simple strategy can help you create a sizeable retirement corpus of Rs 5 crore.
Planning for retirement may seem difficult, but starting early can make a huge difference. Investing Rs 10,000 a month might not feel like much, but in the long run, it can grow into a Rs 5 crore retirement corpus. The secret lies in consistency, patience, and the power of compounding. Small, disciplined investments made regularly can help build a sizeable amount in the long run. Many people underestimate how time and steady growth can turn small savings into a strong financial cushion. Therefore, let’s explore how a simple plan can lead to big results.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is retirement planning?
Retirement planning is the process of saving and investing to ensure financial security after you stop working. It helps you maintain your lifestyle, cover expenses, and achieve financial independence in your later years without relying on others.
Why you must plan for retirement?
Retirement may seem far away, but planning early ensures financial freedom. A well-structured investment plan can help you enjoy a stress-free life without worrying about money.
Power of small investments
Many believe only big salaries create huge wealth, but even Rs 10,000 a month can grow into a massive corpus with time and discipline.
Role of compounding
Your money earns returns, and those returns generate more returns. The longer you stay invested, the bigger your wealth grows.
Impact of staying invested
Market ups and downs are normal. Staying invested through all cycles ensures you don’t miss the long-term growth.
Common mistakes to avoid while investing in retirement planning
Avoid stopping investments early, withdrawing funds too soon, or chasing quick profits. Long-term patience is the secret.
Retirement planning calculation conditions
Target corpus: Rs 5 crore
Investment amount: Rs 10,000 monthly
Annualised return: 12 per cent
How long it will take to build Rs 5 crore corpus with Rs 10,000 monthly SIP?
It will take approximately 35 years to build Rs 5 crore retirement corpus.
What will be your retirement corpus with Rs 10,000 monthly SIP in 10 years?
The investment amount during that period will be Rs 12,00,000, the estimated capital gains will be Rs 10,40,359, and the estimated retirement corpus will be Rs 22,40,359.
What will be your retirement corpus with Rs 10,000 monthly SIP in 20 years?
The investment amount will be Rs 24,00,000, the estimated capital gains will be Rs 67,98,574, and the estimated retirement corpus will be Rs 91,98,574.
What will be your retirement corpus with Rs 10,000 monthly SIP in 30 years?
The investment amount will be Rs 36,00,000, the estimated capital gains will be Rs 2,72,09,732, and the estimated retirement corpus will be Rs 3,08,09,732.
What will be your retirement corpus with Rs 10,000 monthly SIP in 35 years?
The investment amount during that period will be Rs 42,00,000, the estimated capital gains will be Rs 5,09,08,311, and the estimated retirement corpus will be Rs 5,51,08,311.