Frequently Asked Questions
How much SIP is needed for ₹5 crore retirement corpus?
For ₹5 crore in 25 years at 12% returns, you need ₹21,549/month. With 10% annual step-up, start with just ₹10,463/month. The earlier you start, the less you need to invest monthly.
Is ₹5 crore enough for retirement in India?
₹5 crore can generate ₹25-30 lakh annually (5-6% withdrawal rate), which is ₹2-2.5 lakh/month. For current lifestyle of ₹1-1.5 lakh/month, ₹5 crore provides comfortable retirement with buffer for inflation and healthcare.
At what age should I start SIP for ₹5 crore retirement?
Start ASAP! At 25, you need only ₹5,615/month (with step-up). At 35, you need ₹20,193/month. At 40, you need ₹41,255/month. Each decade of delay nearly doubles your required monthly investment.
Should I use step-up SIP for retirement planning?
Absolutely! Step-up SIP lets you start lower and increase with salary growth. For ₹5 crore in 25 years, flat SIP needs ₹21,549/month. With 10% step-up, start at just ₹10,463/month - half the amount!
What returns should I expect for retirement SIP?
For 20-25 year horizon, expect 10-12% from diversified equity funds. Use 10% for conservative planning, 12% for moderate. Don't assume more than 12% - it's better to overshoot your goal than fall short.