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How a Rs 50,000 monthly SIP can build a Rs 8 crore retirement corpus
M
Moneycontrol•09-10-2026, 17:16
How a Rs 50,000 monthly SIP can build a Rs 8 crore retirement corpus
- •A 35-year-old investing Rs 50,000 monthly for 25 years can build a corpus ranging from Rs 4.6 crore at 8 percent returns to Rs 8.5 crore at 12 percent returns.
- •Inflation will significantly impact purchasing power over 25 years, making it crucial to plan retirement around your desired lifestyle rather than just a nominal target.
- •Increasing your SIP annually by around 10 percent as your income grows can dramatically boost the final corpus and reduce reliance on high market returns.
- •A diversified portfolio with equity-oriented investments suits the long-term horizon, while EPF and NPS contributions can also form part of the plan.
- •Protect your investments by maintaining an emergency fund, adequate health insurance, and term cover so unexpected events do not disrupt your retirement goals.
Key Questions Answered
Assuming a 25-year investment horizon until age 60, a monthly SIP of Rs 50,000 could yield around Rs 4.6 crore at an 8 percent annual return, about Rs 6.2 crore at 10 percent, and approximately Rs 8.5 crore at 12 percent.
At a 6 percent inflation rate, a corpus of Rs 5 crore accumulated after 25 years will have a purchasing power equivalent to roughly Rs 1.2 crore in today's terms, while Rs 8 crore would be worth about Rs 1.9 crore.
Stepping up your monthly SIP as your income grows—such as by 10 percent annually—can significantly boost your eventual retirement corpus and reduce your long-term dependence on higher market returns.
