How Much Do You Need for Retirement? Expert Tips on Building a Strong Financial Plan

Planning for retirement is one of the most critical financial decisions in life. As life expectancy increases and traditional family support systems fade, financial independence after retirement has become more important than ever. Yet, many young Indians continue to delay retirement planning, prioritizing other financial goals like home purchases or children's education. Financial experts warn that this negligence can lead to significant financial stress in the later years of life.

Why You Need a Strong Retirement Corpus

According to Chakravarthy V and Chakravardhan Kuppala, co-founders and executive directors at Prime Wealth Finserv, people often forget that retirement doesn’t just mean stopping work—it means starting a phase where there's no regular income for potentially 25 years or more.

Chakravarthy points out, “If you retire at 60 and live till 85, you’ll need to survive 25 years without a salary. The real question is not how long you will live, but how long your money will last.”

Rising Expenses in Retirement Years

Healthcare costs tend to grow faster than regular inflation and often peak during retirement years. With no formal pension in place for many individuals, planning a retirement fund becomes absolutely essential. Also, urban living and the decline of joint family systems have made financial self-reliance crucial in old age.

How Much Money is Enough for Retirement?

Experts suggest beginning retirement planning by the age of 30. To illustrate, if your current household expenses are ₹60,000 per month, and you assume a 6–7% annual inflation rate, these expenses could rise to ₹1.5–2 lakh per month in the next 25 years.

To comfortably cover 20–25 years of retirement, a corpus of ₹4–6 crore may be necessary. This estimation should include a thorough review of current investments in EPF, PPF, mutual funds, and real estate to identify any gaps in the expected retirement fund.

Start Small, Think Big

Starting a SIP (Systematic Investment Plan) of ₹15,000–20,000 per month and increasing it gradually over the years can help build the required retirement fund. It is equally important to plan how to withdraw funds after retirement to ensure a steady income flow.

Investment Options to Build Your Retirement Fund

India offers a variety of investment options tailored for retirement planning. Depending on your financial goals and risk appetite, you can choose one or more of the following:

• Public Provident Fund (PPF): A government-backed, tax-free savings scheme ideal for conservative investors.

• Employees' Provident Fund (EPF): Best suited for salaried individuals, with both employee and employer contributions.

• National Pension System (NPS): A long-term, low-cost option offering flexible asset allocation and tax benefits.

• Equity Mutual Funds via SIP: A growth-oriented investment with the potential to yield high returns over the long term.

SIPs: The New Financial Habit

Chakravardhan Kuppala notes that SIPs have become a financial discipline for many, much like paying rent or EMIs. In March 2025 alone, over ₹7,000 crore was invested in mid- and small-cap mutual funds, highlighting investor confidence despite market volatility.

This shift indicates growing trust in India's long-term growth story, and a committed SIP strategy can help individuals build substantial wealth for retirement.

Final Word

Retirement planning is not something to be pushed to the sidelines. Whether you’re 25 or 35, the earlier you start, the more power you give to your investments to grow. Analyze your expenses, set realistic goals, and start investing with discipline.

Disclaimer: The views and investment suggestions mentioned above are those of individual experts and brokerage firms. Readers are advised to consult certified financial advisors before making any investment decisions.