If an investor starts saving at 25 years for his retirement, he will create a much bigger corpus than if he were to start at 45, even though his investible surplus increases significantly.
Similarly, the risk profile of his portfolio—aggressive, moderate or conservative—and the choice of instruments will affect the size of his retirement kitty. Find out how.
Start at: 25 Years Salary: Rs 60,000 per month
Investible Surplus: Rs 25,000 per month
Investing for retirement: Rs 15,000 per month
Start at: 35 Years Salary Rise @10% per annum Rs 1.55 lakh per month
Investible surplus for retirement Rs 38,906 per month
Start at: 45 Years Salary Rise @10% per annum Rs 4.03 lakh per month
Investible surplus for retirement Rs 1.01 lakh per month
Existing rates and average returns are being considered for different instruments. Small- & mid-cap MF: 15% | Multi-cap MF: 12% | Large-cap MF: 12% | Index MF: 12% | Balanced MF: 11.5% | MIP: 10% | Debt fund: 7% | EPF: 8.5% | PPF: 8% | Bank deposit: 7% | Annuity plan: 7% | NPS: 10% | Stocks: 12%
