Retirement Planning: Save this much money by the age of 30, you'll have 1 crore rupees by the time you're 60. Start these 3 investment options today

When you're 30, your biggest asset is time. Imagine if you started investing around the age of 25 to 28 and continued until you were 60. This long period of 30 to 35 years could multiply your money exponentially. This is called the "power of compounding" in the investment world. Here, interest is earned not only on your principal amount, but also on the interest earned. The longer the time period, the greater the profits

How much money should be saved?

If your goal is to build a corpus of at least ₹1 crore by the age of 60, you don't need to save a large amount each month. For example, if you start a SIP of around ₹6,000 to ₹7,000 per month in an equity mutual fund at age 30 and earn an average annual return of 12 percent, your corpus could reach close to ₹1 crore by the age of 60. This amount could be even larger if you extend the timeframe or increase your investment amount slightly.

Where to invest? Relying solely on savings accounts or fixed deposits (FDs) for retirement isn't ideal. This is because money deposited there gradually loses value due to inflation. According to experts, equity mutual funds, index funds, and retirement funds are better options for meeting long-term goals. As you age, it's wise to gradually shift toward safer options while minimizing risk

Systematic Investment Plans (SIPs) are the simplest and most convenient method of retirement planning. A fixed amount is invested monthly. The advantage is that you don't face a large financial burden all at once and the impact of market fluctuations is also moderated. Regular SIPs over a long period of time can gradually build a substantial corpus.

One important thing to always remember

It's crucial to factor in inflation when planning for retirement. The value of ₹1 crore today could be significantly reduced after 30 years. Therefore, review your investments periodically and increase your SIP amount if necessary. The earlier you start, the easier it will be to ensure future financial security.

Disclaimer: Investments in mutual funds and the stock market are subject to market risks. Please consult your financial advisor before investing in any scheme. This article is for informational purposes only and should not be construed as investment advice.