Find out exactly how much you need to retire comfortably in India. Factor in monthly expenses, inflation rate, life expectancy, and existing savings.
NPS gives 80CCD(1B) tax benefit of Rs 50,000/year and typically delivers 10-12% returns. Start NPS and ELSS SIPs today on Groww.
Open NPS Account on Groww →Check ELSS mutual funds on ScripboxIt depends on your lifestyle, city, and health costs. A common rule: corpus = 25x your annual expenses (4% withdrawal rate). For Rs 60,000/month expenses at retirement, you need Rs 1.8 crore. With 6% inflation adjustment and 25 years of retirement, you may need Rs 3-5 crore or more.
The 4% rule says you can withdraw 4% of your corpus annually and it will last 30 years. So if your annual expenses are Rs 7.2L (Rs 60K x 12), you need corpus of Rs 7.2L / 0.04 = Rs 1.8 crore. This assumes ~7% returns and adjustments for inflation.
Start as early as possible. At age 25 with Rs 10,000/month SIP at 12% CAGR, you accumulate Rs 3.5 crore by 55. At age 35, the same SIP gives only Rs 1.4 crore — less than half. Every 5-year delay roughly halves your corpus due to lost compounding.
NPS (National Pension System) + ELSS Mutual Funds + EPF is the recommended triple combination. NPS offers tax benefits and market-linked returns of 10-12%. ELSS gives equity exposure with 80C deduction. EPF provides guaranteed 8.25% risk-free returns.
EPF, NPS, and most mutual funds allow nomination. Your nominee receives the corpus. For NPS, 60% of corpus can be withdrawn, and 40% must be used to buy an annuity for the nominee. Life insurance (term plan) should also be part of your financial plan to protect dependents.