After retirement, you will get 1 lakh rupees every month, know how much will have to be invested according to your current age

Retirement Planning: In today’s run-of-the-mill life, people start saving money for small needs, but do not prepare for retirement. Which is the most important and long -term financial goal of this life. According to PGIM India Retirement Ready Survey 2023, most people prepare the same investment funds for all their elders, which weaken retirement planning.

Separate money required for retirement

Retirement is a goal for which you cannot get a loan. Banks can help you in home, car or children’s education, but the preparation for retirement is your only support. If you want an income of ₹ 1 lakh every month after retirement, then you have to make a big fund for this.

According to an estimate, if you retire at the age of 60 and live for 85 years, you will need ₹ 1 lakh every month for 25 years. If you get 12% returns every year from your retirement fund and the inflation rate is considered 7%, then you will need a fund of about ₹ 2.5 to ₹ 3.25 crore.

Advantage of early starting

Suppose a person starts investing at the age of 25 and invests a certain amount (Rs 5000) every month. He invests ₹ 21 lakh in 35 years and makes a fund of ₹ 2.75 crore with 12% annual return. On the other hand, if another person starts a SIP of ₹ 10,000 at the age of 35, then he gets only ₹ 1.70 crore with 12% annual return by investing ₹ 30 lakh. On the other hand, if another person starts a SIP of ₹ 25,000 at the age of 45 and invests ₹ 45 lakh in 15 years, then he gets only ₹ 1.18 crore. That is, the sooner we start, the better the benefit of compounding.

how to start?

• Start monthly investment through SIP
• Keep a separate investment account for retirement.
• Be sure to buy health and life insurance.
• Review your investment annually.
• Consult an experienced financial advisor.