Retirement Planning At 40: Here’s How You Can Still Create A ₹2.3 Crore Corpus

Many people in their 40s often feel they’ve missed the bus when it comes to retirement planning. The pressure of delayed investing and the belief that time has run out can be overwhelming. But financial experts say that starting at 40 can still lead to meaningful financial security, provided you approach it with discipline and consistency. Through the power of systematic investing, a focused savings plan and compounding returns, it is very much possible to build a retirement corpus exceeding ₹2 crore by the time you turn 60—even if you’re starting now.

Understanding How Much You Can Invest Monthly

When it comes to investing, two common strategies are often recommended: the 10% and 20% rules. These are simple benchmarks where you save 10% or 20% of your monthly income, respectively. For instance, if your income is ₹50,000 a month, you should ideally save ₹5,000 to ₹10,000 monthly towards long-term goals like retirement. These savings, if channelled into mutual funds through a Systematic Investment Plan (SIP), can grow substantially over time due to the effect of compounding.

Below is an idea of the monthly investment amount as per these rules:

• ₹30,000 salary → ₹3,000 (10%) or ₹6,000 (20%)
  
  
  
• ₹60,000 salary → ₹6,000 (10%) or ₹12,000 (20%)

₹1,00,000 salary → ₹10,000 (10%) or ₹20,000 (20%)

The amount may seem small at first glance, but when sustained over 20 years with even moderate returns, it can produce impressive results.

How Your Corpus Grows Over Time With SIPs

Let’s say you begin SIPs at age 40 and aim to retire at 60. With a monthly investment of ₹25,000 and an annualised return of 12%, your estimated retirement corpus could be close to ₹2.30 crore by the end of 20 years. The calculation includes ₹60 lakh as invested capital and ₹1.70 crore as estimated capital gains, thanks to compounding growth.

According to financial experts, this kind of consistent long-term investment not only offsets the delayed start but also provides a robust buffer for a comfortable retirement. If returns rise to 14% annually, the same investment may potentially grow to nearly ₹2.93 crore.

Here’s a year-by-year snapshot of how your corpus could grow at a 12% return rate:

• Age 45 → ₹20.27 lakh
  
  
  
• Age 50 → ₹56.00 lakh
  
  
  
• Age 55 → ₹1.18 crore
  
  
  
• Age 60 → ₹2.29 crore

And at 14% returns, your growth curve steepens further:

• Age 45 → ₹21.30 lakh
  
  
  
• Age 50 → ₹62.32 lakh
  
  
  
• Age 55 → ₹1.41 crore
  
  
  
• Age 60 → ₹2.93 crore

Why Starting Late Still Works

The power of SIPs lies in consistency and long-term perspective. Starting at 40 means you still have 20 years of potential growth ahead. With even modest returns, your investments can double every six years. The key is to avoid delays and begin immediately. Even increasing your SIP contribution by 5–10% annually as your income rises can significantly boost your end corpus.

Experts also suggest that lifestyle adjustments, budgeting, and financial goal mapping can help channel more funds into investments. For instance, cutting discretionary expenses and reallocating them towards SIPs can create room for higher contributions without affecting essential needs.

Making Your Plan Actionable

If you’re 40 today, here’s a practical roadmap:

1. Assess your current income and expenses
   
   
   
2. Determine a comfortable monthly SIP amount (ideally 20% of income)

Choose diversified mutual funds or equity-oriented hybrid funds

Automate your SIPs and avoid breaking the discipline

Review and increase SIPs annually as income rises

Consult a certified financial planner for personalisation

This roadmap helps you stay on track while optimising returns over the 20-year investment horizon.

Aiming Beyond ₹2 Crore: Is It Feasible?

Yes, absolutely. With a higher monthly SIP, better fund performance, and disciplined investing, even a ₹3 crore or more corpus is achievable. For example, investing ₹30,000 monthly instead of ₹25,000 with a 14% return could get you past ₹3.5 crore by age 60. The combination of discipline, time and fund selection is what drives results.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investment decisions should be made in consultation with certified professionals based on individual financial goals and risk tolerance. Returns mentioned are based on assumptions and not guaranteed. According to experts, investing early and regularly is crucial—but even a late start can still be rewarding with the right approach.