Jan 29, 2026

How To Build A Rs 5–6 Crore Retirement Corpus Starting At 40

Abhijit Basak

Why Age 40 Is Not Too Late

Starting at 40 still gives you 20 productive earning years. While compounding time is shorter, higher income stability and focused investing can help you target a Rs 5–6 crore retirement corpus with disciplined monthly investments and regular reviews.

Image Source: Meta-AI

Using SIPs To Build Long-Term Wealth

Systematic Investment Plans allow you to invest monthly, reduce market timing risk and benefit from rupee cost averaging. SIPs are one of the most effective ways for salaried investors to steadily accumulate wealth for retirement goals.

Image Source: Meta-AI

Rs 55,000 Monthly SIP Strategy

A monthly SIP of Rs 55,000 for 20 years at an assumed 12% annual return can grow into roughly Rs 5.06 crore. The total investment would be around Rs 1.32 crore, highlighting the impact of long-term compounding.

Image Source: Meta-AI

Rs 65,000 Monthly SIP Strategy

Investing Rs 65,000 per month over 20 years at an estimated 12% return can potentially build a corpus close to Rs 5.98 crore. This approach suits investors with higher disposable income and stable cash flows.

Image Source: Meta-AI

Power Of Step-Up SIPs

If investing Rs 55,000 initially feels difficult, starting with Rs 40,000 and increasing the SIP amount by 10% annually can significantly improve outcomes. Step-up SIPs align well with salary hikes over the years.

Image Source: Meta-AI

Focus On High-Interest Debt Reduction

Clearing credit card dues and personal loans should be a priority. High-interest debt erodes returns and weakens compounding benefits. Reducing such liabilities early frees up more capital for long-term retirement investments.

Image Source: Meta-AI

Asset Allocation Matters

A balanced mix of equity-oriented mutual funds and safer instruments helps manage risk while targeting growth. Equity exposure is crucial in the early years, with gradual rebalancing as retirement approaches to protect capital.

Image Source: Meta-AI

Review And Adjust Your Plan Regularly

Life circumstances, income changes and market conditions evolve. Reviewing your retirement plan annually ensures SIP amounts, asset allocation and goals remain aligned, helping you stay on track for a Rs 5–6 crore target.

Image Source: Meta-AI

Discipline Is More Important Than Timing

Consistent investing matters more than perfectly timing the market. Staying invested through market cycles allows compounding to work effectively and reduces emotional decision-making that can derail long-term retirement plans.

Image Source: Meta-AI

Disclaimer And Final Thought

This content is for information only and does not constitute financial advice. Returns are indicative and market-linked. Investors should consult certified financial advisors before investing. Starting at 40 still offers a strong opportunity to retire comfortably.

Image Source: Meta-AI

Thanks For Reading!

Next: Can Rs 20 Lakh Grow Big? Why Time Matters More Than Timing

Find out More