SIP and One-time Investment in Retirement Planning: How you may get 55,000 monthly amount at retirement if your age is 30, 35, 40, or 45 years

SIP and One-time Investment in Retirement Planning: Retirement is an important phase for everyone’s life.

One needs a regular source of income to live the retirement phase financially free.

The regular income can also come through the return from the investment they make during their pre-retirement life.

The investment can be monthly, sporadic, or one time.

The retirement corpus should be enough to cover all their post-retirement expenses.

What should be your retirement corpus?

How can you create it?

What investment types can help you to build a retirement corpus, and what should be your monthly SIP and one-time (lump sum) investments to get Rs 55,000 monthly income at retirement?

If your age is 30, 35, 40, or 45 years. See calculations!

What is retirement corpus?

It is an amount that a person requires to make their retirement life financially free. It should be inflation-adjusted as prices of things rise with time.

What should be the size of retirement corpus?

A retirement corpus should not end throughout the expected life. 

How one should calculate their retirement corpus

There are 3 key stages for retirement corpus calculation.

Your current age, years to retirement, and life expectancy.

Considering average inflation as a factor, one can calculate the amount from the first year of retirement till the last year.

Since one can’t predict their life, they can consider facts such as their family health history, their own health, and possible health risks for the future.

How to invest for retirement corpus?

If one has calculated the estimated corpus that they require, the second stage is how many years they have to build it.

Based on that, they can calculate the required rate of return.

They can keep a mix of market-linked and non-market-linked investments to achieve that target.

Since taxation rules can change and the share market is unpredictable for equity-related investments, one needs to keep revising their retirement investment strategies whenever required.

How to get Rs 55,000 monthly income

We will calculate the corpus, monthly SIP, and one-time investment to get Rs 55,000 monthly if the age of the investor is 30, 35, 40, or 45 years.

The retirement age will be 60, and the expected life will be 80 in each case.

We will take the pre-retirement return as 12 per cent and the post-retirement investment return as 7 per cent.

The inflation rate for the calculations will be 6 per cent.   

Monthly SIP investment to get Rs 55,000 monthly income (for 30-year-old)

The estimated expenditure in the first year of retirement will be Rs 3,15,892 a month.

The estimated corpus required will be Rs 6,90,66,555.

The estimated monthly SIP investment will be Rs 19,566.

One-time investment to get Rs 55,000 monthly income (for 30-year-old)

The estimated one-time (lump sum) amount required will be Rs 23,05,299.

Monthly SIP investment to get Rs 55,000 monthly income (for 35-year-old)

The estimated expenditure in the first year of retirement will be Rs 2,36,053 a month.

The estimated corpus required will be Rs 5,16,10,574.

The estimated monthly SIP investment will be Rs 27,197.

One-time investment to get Rs 55,000 monthly income (for 35-year-old)

The estimated one-time (lump sum) amount required will be Rs 30,35,905.

Monthly SIP investment to get Rs 55,000 monthly income (for 40-year-old)

The estimated expenditure in the first year of retirement will be Rs 1,76,392 a month.

The estimated corpus required will be Rs 3,85,66,307.

The estimated monthly SIP investment will be Rs 38,599.

One-time investment to get Rs 55,000 monthly income (for 40-year-old)

The estimated one-time (lump sum) amount required will be Rs 39,98,045.

Monthly SIP investment to get Rs 55,000 monthly income (for 45-year-old)

The estimated expenditure in the first year of retirement will be Rs 1,31,811 a month.

The estimated corpus required will be Rs 2,88,19,127.

The estimated monthly SIP investment will be Rs 57,116.

One-time investment to get Rs 55,000 monthly income (for 45-year-old)

The estimated one-time (lump sum) amount required will be Rs 52,65,147.