The Compounding Penalty of Delay
Consider two investors, both targeting ₹5 crore at age 60, expecting 12% annual returns:
| Start Age | Monthly SIP Needed | |---|---| | 25 | ₹5,900 | | 30 | ₹10,800 | | 35 | ₹20,000 | | 40 | ₹38,000 | | 45 | ₹77,000 |
The investor who starts at 45 needs to invest 13× more every month than the one who starts at 25 — for the same outcome.
Retirement Planning Is Not Just for the Old
Retirement planning is not a product. It is a 30-year project that has three phases:
1. Accumulation (age 25–55): Build the corpus aggressively. 2. Transition (age 55–60): Gradually shift to lower-risk assets. Protect what you've built. 3. Withdrawal (age 60+): Withdraw systematically without running out of money.
What to Do at Different Life Stages
In your 20s: Start SIPs in equity mutual funds. Even ₹3,000/month matters enormously. Open an NPS account.
In your 30s: Increase SIP amount every year. Ensure adequate term insurance so dependents aren't derailed if something happens to you.
In your 40s: Review your corpus annually. Rebalance toward balanced funds. Maximise tax-advantaged accounts (NPS, PPF).
In your 50s: Shift a growing share toward debt and hybrid funds. Model your withdrawal needs. Consider annuity options.
> Altius Tip: Treat your retirement SIP as a non-negotiable EMI you pay to your future self. It is the one expense that is truly non-negotiable.
