Big SIP Plans Can Still Work At 35: Here’s How You Can Build A ₹7 Crore Retirement Corpus

Retirement planning need not be daunting even if you missed investing in your 20s. According to experts, with a disciplined Systematic Investment Plan (SIP), even individuals starting at age 35 can accumulate a retirement corpus exceeding ₹7 crore by 60. The key lies in selecting the right monthly contribution, increasing it gradually, and allowing compounding to do its job over time. Let’s explore how salaried individuals can make up for lost years with a smart, flexible SIP approach that aligns with their income flow.

Why SIPs Are Ideal For Salaried Individuals

SIPs are a popular choice among salaried professionals because they allow small, periodic investments that don’t burden the investor. Experts often recommend allocating 10% to 30% of one’s monthly income to long-term investments. With SIPs, investors can adjust the date or the amount based on changes in income or expenses. This flexibility makes SIPs not only beginner-friendly but also sustainable over decades.

How Step-Up SIPs Work And Why They Matter

A standard SIP involves investing a fixed sum every month. However, a step-up SIP goes a step further—it allows investors to increase the SIP amount annually, typically in line with salary hikes. For example, if someone begins with ₹25,000 per month and increases it by 5% annually, their total investment over 25 years grows substantially, helping them combat inflation and accumulate higher wealth.

Financial planners emphasise the importance of step-up SIPs, especially for late starters, as they allow for a higher corpus without straining initial budgets. Gradually increasing contributions helps maintain investing momentum as income levels rise over time.

How Much You Need To Invest Monthly At Age 35

Assuming retirement at 60, a 35-year-old has a 25-year window for investment. Based on a 13% annualised return and a monthly SIP starting at ₹25,000, stepped up by 5% each year, experts estimate the total investment to be around ₹1.43 crore over this period. The expected capital gains could amount to roughly ₹5.72 crore, leading to a projected corpus of over ₹7.15 crore.

Such calculations clearly show how disciplined investing, paired with gradual contribution hikes, can help build significant retirement wealth even with a delayed start.

Comparing SIP With And Without Annual Step-Up

To understand the impact of stepping up investments, consider two investors, A and B. Both begin with ₹10,000 monthly SIPs. Investor A continues this for 25 years without change, while investor B increases their SIP by 5% annually.

At an assumed 12% return:

• Investor A contributes ₹30 lakh over 25 years, grows it to ₹1.7 crore

Investor B contributes ₹57.27 lakh, grows it to ₹2.48 crore

Despite B investing ₹27.27 lakh more, the gain is around ₹78 lakh higher. This demonstrates how a step-up strategy can significantly boost long-term outcomes without requiring a huge starting amount.

Power Of Compounding Is Your Ally

The magic of compounding lies in reinvesting returns back into the principal. Over time, the gains generate their own gains, creating an exponential growth curve. Even a modest SIP, when maintained over decades, benefits from this compounding effect. The longer the duration, the greater the impact—making early and consistent investing critical.

Financial experts stress that compounding rewards patience. The most successful investors are not necessarily those who invest the most, but those who stay invested the longest.

Not Too Late To Start Planning

For anyone who feels they’ve started too late, experts advise focusing on what can be done from this point forward. A carefully planned SIP, with an annual increase, realistic return expectations, and long-term consistency, can make up for the delay. The goal of ₹7 crore by age 60 is achievable, but the key lies in starting now.

Disclaimer: This article is intended for informational purposes only and should not be construed as financial advice. Please consult a certified financial planner before making any investment decisions. All projections are based on hypothetical scenarios and expert assumptions.