Retirement Planning: How To Accumulate ₹10 Crore With Consistent Investments

Creating a retirement corpus of ₹10 crore might sound like an ambitious goal, but financial planners suggest that with discipline, patience, and a systematic approach, it is achievable. Starting early, choosing the right investment vehicles, and increasing contributions over time can significantly boost wealth creation. Experts point out that the power of compounding, coupled with consistent long-term investments, plays a vital role in turning this aspiration into a reality.

The Importance Of Starting Early

Financial experts highlight that time is the most powerful tool for investors. The earlier one starts, the less pressure there is on monthly contributions. For instance, assuming an average annual return of around 12 per cent from equity mutual fund SIPs, a 25-year-old could achieve the ₹10-crore milestone by investing close to ₹19,000 per month for 35 years. However, delaying the start by just a decade could increase the required monthly contribution to nearly ₹59,000, illustrating how compounding benefits diminish with a shorter investment horizon.

Choosing The Right Asset Mix

A retirement plan requires a balanced investment approach, and equity investments form the backbone of long-term wealth creation. Market-linked assets generally outpace inflation, making them crucial in the early years. Experts suggest maintaining a higher equity allocation at the beginning and gradually shifting towards debt instruments and fixed income products as retirement nears. Index funds, diversified equity funds, and exchange-traded funds can provide a strong foundation, while experienced investors may also explore direct equity options. The idea is to balance growth with stability.

Increasing Contributions With Income Growth

As income levels rise, it is advisable to increase contributions towards retirement savings. Even a modest step-up of 5 to 10 per cent annually in SIPs can make a significant difference. According to financial planners, this incremental increase helps offset inflation and lifestyle-related expenses, ensuring that the retirement goal remains within reach. Consistently raising contributions also shortens the time required to achieve the corpus.

The Role Of Inflation In Planning

Inflation is often underestimated when planning for retirement. While ₹10 crore may appear substantial today, its value decades later will be considerably lower. Experts emphasise that investors should set a higher target to safeguard against the erosion of purchasing power. A retirement corpus should not only cover basic expenses but also account for medical costs, lifestyle choices, and unforeseen contingencies.

Avoiding Premature Withdrawals

One of the key mistakes to avoid is dipping into the retirement corpus during the accumulation phase. Financial advisors warn that premature withdrawals weaken the compounding effect and can derail long-term plans. To ensure discipline, retirement savings should remain ring-fenced and untouched, separate from short-term investment or emergency funds.

Regular Monitoring And Adjustments

Building a ₹10-crore retirement fund is not about chasing risky, high-return investments but about creating a sustainable plan. Experts recommend regular reviews of the portfolio to align with changing financial goals, risk appetite, and market conditions. Adjusting the asset allocation periodically ensures that investors stay on track without taking unnecessary risks.

Achieving a ₹10-crore retirement corpus is not an overnight feat but the outcome of starting early, investing consistently, and letting compounding work over decades. By staying disciplined, increasing contributions in line with income, and keeping inflation in mind, a financially secure retirement becomes a realistic goal. According to experts, success lies in patience and planning rather than speculative investment choices.

Disclaimer: This article is for informational purposes only. Investment decisions should be made after consulting qualified financial experts, as individual goals, risk profiles, and market conditions may vary.