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Retirement Planning at Age 40: Calculate How Much You Need to Invest
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News18•18-10-2026, 14:52
Retirement Planning at Age 40: Calculate How Much You Need to Invest
- •Financial rules suggest accumulating 25 to 30 times your annual expenses by retirement, which could mean needing a corpus of around Rs 2.9 crore at age 60.
- •A fixed monthly SIP of Rs 15,000 with a 12 percent annual return can build a corpus of nearly Rs 1.5 crore over 20 years.
- •Increasing your monthly SIP investment by 10 percent every year can help you reach a target corpus of around Rs 3 crore.
- •Allocate a large portion of investments to equity index funds or flexi-cap funds initially, and gradually shift to hybrid and debt funds near retirement.
- •Build an emergency fund, secure adequate health insurance, and keep retirement funds separate from children's education or marriage expenses.
Key Questions Answered
By making a fixed monthly SIP of Rs 15,000 with an assumed annual return of 12 percent, a corpus of nearly Rs 1.5 crore can be built over 20 years. If you increase your monthly SIP investment by 10 percent every year, your total corpus can reach around Rs 3 crore after 20 years.
According to the latest PFRDA rules, private sector NPS subscribers who have a corpus of more than Rs 12 lakh are permitted to withdraw a maximum of 80 percent of the amount as a lump sum.
For the October-December quarter of 2026, the interest rate offered on Public Provident Fund (PPF) investments is 7.1 percent.
