Planning for Retirement: I am considering investing Rs 50,000 through SIPs over the next 15 years to build my retirement savings. Currently, my expenses are below Rs 30,000 as children are settled in their respective jobs and don't wish to get married so soon. Taking into account inflation and post-retirement expenses, I am curious to know how much I can expect my corpus to grow to in 15 years. Will this amount be enough to support me during retirement? 

Advice by Anand K. Rathi, Co-Founder of MIRA Money

By investing in a Systematic Investment Plan (SIP) of Rs 50,000 each month for the next 15 years, you could potentially grow your retirement corpus to between Rs 3.2 and 3.5 crores, depending on your chosen risk profile. This amount could provide a comfortable cushion for your retirement years, allowing you to sustain yourself for the next 30 years by withdrawing at a growth rate of 5-6 percent. However, it's important to note that this strategy may not leave you with a substantial remaining corpus.

Starting with Rs 50,000 is certainly a solid foundation. If you can increase your investment whenever you receive a salary hike or bonus, it would significantly enhance your retirement savings. If you maintain the 50,000 monthly SIP for about 15 years and assume an average growth rate of 14-15 percent, your portfolio could reach approximately Rs 3.2 to Rs 3.5 crore. This is primarily achievable if you invest in multi-cap or well-diversified equity mutual funds. 

While this approach is riskier, risk is generally reduced when you hold investments for a longer period. Therefore, consistent investing and adherence to your asset allocation by focusing on equities and selecting a reputable fund house are crucial. 

If all these elements align, you could potentially have close to Rs 3.2 to Rs 3.5 crore by the end of the investment period. The key is to invest consistently in a flexicap fund, anticipating a return of around 14-15 percent.

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