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Cost of delay in Retirement Planning

The question is not that “Do You need a retirement plan?” the question is “When are you starting to invest in a retirement plan?” We all retire someday no matter what the profession, even business owners retire someday. To have a peaceful retirement one needs to start as early as possible. You need time for your investments to grow.

Read the example below on how time helps you grow your investment.

Wake up cost of delaying your plans is huge

Wake Up Photo By Stuart Miles / freedigitalphotos.net

The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb

GOAL: Accumulate ₹ 1 Crore at the time of retirement

We all know starting early in investments means more time for the money to grow. This blog attempts to quantify this concept. As you can see a person aged 20 years needs to invest ₹ 2,000/- per month till retirement where as a person aged 35 needs to invest ₹ 7,500/-

The illustrator below assumes a compounded return of 10%, compounded monthly.

AGE	Amount Needed to Accumulate Rs. 1 Cr at Retirement (60 years) (at 10% compounded annual return)
20	₹ 2,000
25	₹ 3,000
30	₹ 4,500
35	₹ 7,500
40	₹ 13,500
45	₹ 24,000
50	₹ 48,500
55	₹ 128,500

Amount Needed to Accumulate Rs. 1 Cr at Retirement (60 years)

Amount Needed to Accumulate ₹ 1 Cr at Retirement (60 years) . At 10% compounded annual return.

Divya (62 Posts)

Divya is a Financial Advisor at DivyaAdvisor.com. She has MBA(Finance) from BIT,Mesra,Ranchi and authorized distributor of financial products listed below. Products: LIC of India, Star Health, Shares and all Mutual Funds Houses in India Others: Tax Free Bonds and Real Estate Advisory