Start Retirement Planning in Your 40s with SIPs
28 Mar 2024
Get a HeadStart On Retirement Planning
As individuals navigate their 40s, retirement planning takes on heightened significance, with looming concerns such as home loans and education expenses demanding attention. Yet, amidst these immediate financial obligations, the inevitability of retirement often looms large. Amidst the myriad of investment options available, Systematic Investment Plans (SIPs) emerge as a beacon of stability and growth. With SIPs, investors can embark on a journey of consistent wealth accumulation, leveraging the power of disciplined investing and long-term compounding.
Early Bird Gets the Worm
For a broad idea on what a retirement plan should look like, observe how the three investors need to adjust for inflation to save for retirement at 60 years, via mutual fund SIPs.
| Particulars | Adarsh | Chaitanya | Raunak |
|---|---|---|---|
| Current Age | 30 | 35 | 40 |
| Life Expectancy | 85 | 85 | 85 |
| Expected Return on Inv. Pre-retirement | 12.5% | 12.5% | 12.5% |
| Expected Return on Inv. Post-retirement | 7.00% | 7.00% | 7.00% |
| Expected Inflation Rate (Pre & Post retirement)* | 6% | 6% | 6% |
| Current Monthly Expense | 1,00,000.00 | 1,00,000 | 1,00,000 |
| Retirement Corpus Needed | 14,38,60,320 | 12,08,85,405 | 9,03,69,140 |
| Monthly SIP needed | ₹ 36,815 | ₹ 52,371 | ₹ 85,375 |
Starting early reduces the future investment burden, leading to a smoother ride ahead. So, begin now for a more seamless journey in the future!
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
