Retirement Savings Planner: How Much to Invest Monthly?

Retirement plan is essential for a comfortable and stress-free future. In India, traditional employer pensions are becoming rare, which means individuals must create their own “pension” through savings and investments. Many people in their 40s and 50s worry whether they have saved enough, as rising healthcare costs can strain retirement funds.

Starting a retirement plan early gives your money more time to grow, thanks to compounding, and helps ensure you won’t outlive your savings. By planning ahead, you address key pain points– like maintaining your lifestyle after your salary stops– and avoid scrambling to catch up on savings later in life.

A good retirement plan begins with understanding your future needs. Consider how much income you’ll need each month after you retire: Will you still pay rent or a mortgage? What about medical bills or supporting family members? Answering these questions helps you set a clear retirement goal. Importantly, having a solid plan in place can alleviate the anxiety many feel about retirement. You’ll be more confident knowing you have a roadmap for financial security in your golden years, rather than leaving your future to chance.

Determining Your Retirement Corpus

One of the first steps is figuring out how much money you will need in retirement. A common guideline is the “70%–80% rule”, which suggests you’ll need roughly 70–80% of your pre-retirement income each year to maintain a similar standard of living. For example, if you earn ₹1,00,000 per month before retirement, you might aim for about ₹70,000–₹80,000 per month in retirement income.

This rule of thumb accounts for the fact that some expenses (like work commuting or child-related costs) may drop, but other costs (healthcare, leisure, etc.) could rise. It’s a starting point to estimate your annual needs in retirement.

Another popular metric is the 25x rule, which is related to the famous 4% withdrawal rule. The 25x rule for retirement means you should aim to save at least 25 times your annual expenses to retire comfortably. This target corpus, when invested, could theoretically sustain roughly a 4% yearly withdrawal over ~30 years without running out of money.

For instance, if you expect your retirement expenses to be ₹10 lakh per year (about ₹83,000 per month), you’d need around ₹2.5 crore as your nest egg (since 25 × 10 lakh = ₹2.5 crore). The 25x rule is a quick way to gauge your savings goal. Keep in mind it assumes a balanced portfolio and a retirement lasting about 30 years – if you plan to retire very early or have longer to fund, you might target an even higher multiple (some early retirees use 30x or 40x).

How Much to Invest Monthly for Retirement

Once you have a target retirement corpus in mind, the next step is figuring out how much to invest each month to reach that goal. The monthly investment required will depend on your timeline (years until retirement) and the expected return on your investments. The good news is that the earlier you start, the less you need to save per month – time and compound growth do a lot of the heavy lifting. Conversely, starting late or having a short horizon means you’ll need to invest a larger chunk of your income every month.

Let’s break down an example: Suppose you’re 30 years old and want ₹1 crore by age 60. That gives you 30 years. If we assume a moderate return of about 8% per year, you’d need to invest roughly ₹6,000 – ₹7,000 per month to hit the goal of ₹1 crore. If you could get a higher return around 12% (by investing more aggressively in equities), the required monthly investment drops to around ₹3,000 per month for the same goal.

Now, if you delay and start at age 45 with only 15 years until 60, the numbers change drastically. At 8% returns, a 15-year horizon for ₹1 crore might need on the order of ₹25,000 per month, and even with higher 12% returns, you’d still need roughly ₹15,000 per month or more. These figures illustrate how time is your greatest ally in retirement planning.

Also Read: HNI Tax Efficient Investment Guide 2025 | Wealth Tips

A handy rule some experts suggest is to try and invest a fixed percentage of your income towards retirement. Often, saving at least 15–20% of your monthly income for retirement is recommended. For example , if you take home ₹1 lakh a month, aim to put ₹15,000 – ₹20,000 of that into retirement-focused investments consistently. If you can’t start that high, start lower and increase it yearly (for instance, raise your investment 5-10% each year or whenever you get a raise – this is sometimes called a step-up SIP strategy). The key is consistency and gradually ramping up your contributions. Over a career, investing and increasing 15–20% (or more) of your income regularly can put you in a strong position by the time you retire.

Remember, how much you need to invest monthly also depends on the return rate you expect. Equity-heavy investments (like stocks or equity mutual funds) historically offer higher returns than fixed deposits or bonds, which means you might invest a bit less monthly for the same goal – but equities come with higher risk and volatility.

On the other hand, if you invest very conservatively at 5–6% returns, you’ll need to save much more each month. It’s often wise to assume a moderate return (not too optimistic) for planning purposes, to be on the safe side. A retirement calculator or financial planner tool can crunch these numbers for your specific situation – inputting your goal, years to go, and assumed return to tell you the monthly SIP (Systematic Investment Plan) needed.

Best Investment Options for Retirement in India

To achieve your retirement corpus, you’ll likely invest across multiple instruments. The best retirement investment strategy for most people is a mix of growth assets (to beat inflation over the long term) and safe assets (to protect capital). Here are some of the top investment options in India to consider for your retirement plan:

• Employee Provident Fund (EPF) and Public Provident Fund (PPF): These are government-backed, low-risk options. EPF is automatic for salaried employees – a portion of your salary goes into EPF and earns interest (~8% currently) tax-free. PPF is a voluntary 15-year scheme (extendable) where you can contribute up to ₹1.5 lakh/year; it also offers a decent interest (~7-8% range) and tax-free maturity.

• National Pension System (NPS): NPS is a retirement-focused investment scheme with tax benefits. You can invest regularly in NPS, which then invests your money in a mix of equity, corporate bonds, and government bonds as per your preference. It has a low cost and you can choose your asset allocation. NPS also gives an extra ₹50,000 tax deduction beyond 80C. The downside is you must annuitize a portion at retirement, but NPS is a powerful tool to build a retirement corpus, especially for those looking for an additional tax break and disciplined investing toward retirement.

• Mutual Funds (Equity and Hybrid Funds): Looking for best retirement investment funds? Mutual funds for retirement are very popular because they offer potentially higher returns through market investments. Equity mutual funds (like large-cap, index funds, diversified equity funds) can be great for long-term growth if you have 10+ years. There are even dedicated retirement mutual fund schemes now tailored for retirement goals .

They provide growth potential with somewhat less volatility than pure equity. Mutual fund investing and retirement planning often go hand-in-hand now, as many Indian investors use SIPs in mutual funds as their primary wealth accumulation method for retirement.

• Direct Stocks: Looking for investment options Investing directly in stocks is another route for potentially high returns, but it requires expertise and tolerance for risk. Unless you are very confident in stock picking, a better approach for most is to use equity mutual funds or index funds, where professionals or the index strategy manage the diversification.

• Real Estate: Some people plan to rely on rental income from property in retirement. Real estate can be a good asset (it’s a hedge against inflation and provides tangible value). If you acquire a second home or commercial property, the rent can supplement your retirement income. o fairly illiquid (you can’t sell a house quickly without costs if you need cash).

To maximize your retirement corpus, invest as much as you comfortably can each month into a diversified set of assets. In your younger years, tilt more towards growth assets like equity funds (since you have time to ride out market swings). Getting in touch with a chartered retirement planning counselor also will help.

Working with a Retirement Planner

Retirement planning can be complex, and it’s perfectly sensible to seek professional guidance. A qualified retirement planner or financial advisor can tailor a plan to your specific situation, help with calculations, recommend products, and keep you on track. But how do you choose the best retirement planner for your needs? Here are a few tips:

• Look for Credentials and Expertise: In the financial world, certain certifications indicate specialization. In India, you should ensure the advisor is a SEBI-Registered Investment Advisor (RIA) or is tied to an organization with that license – this ensures they are regulated and required to act in your best interest (fiduciary duty).

• Fee-only vs Commission-based: Ideally, opt for a fee-only financial planner who charges you for advice rather than one who earns commissions by selling products. Fee-only planners (often RIAs) are more likely to be unbiased since they don’t get paid by any insurance or mutual fund company for pushing products.

• Experience and Track Record: Retirement planning is unique in that it spans very long timelines and has to account for things like life expectancy, inflation, healthcare, estate planning, etc. Ask a prospective planner about their experience with clients in your age and situation.

• Services Offered: Clarify what the planner will do for you. A good retirement planner will assess your post-retirement income needs, calculate the required corpus, devise an investment strategy to reach that corpus, plan how to generate income in retirement, advise on insurance (health/term life) needs, and even help with estate planning (writing a will, etc.).

• Background Check: Do a quick background check on the advisor or firm. In India, you can verify an individual’s RIA registration on the SEBI website. Look for any disciplinary actions or complaints. You can also search online for reviews. Since you are literally trusting this person with your life savings plan, a bit of due diligence helps.

Working with a skilled retirement planner can greatly simplify the process and give you peace of mind. For instance, Wright Research offers financial advisory and portfolio management services that include retirement planning. With data-driven strategies and SEBI-registered experts, we help investors chart a clear path to their retirement goals.

Whether it’s choosing the right mutual funds, optimizing tax savings, or adjusting your plan as life changes, a professional can add tremendous value. Ultimately, the best retirement planner is one who understands your needs and has the expertise to guide you in achieving them – be it a human advisor or even a robust online planning tool.

Conclusion

By working with professionals and using smart technology, you ensure that your retirement plan is optimized and that you’re making informed decisions at every step. With the right plan and consistent action, you can look forward to a retirement in which you not only meet your basic needs but truly enjoy your golden years with financial freedom and peace of mind.

Frequently Asked Questions

1. What is the best retirement planner?

The term retirement planner can refer to a professional advisor or a planning tool. The best retirement planner is one that fits your needs and helps you achieve your goals. For some, this might be a certified financial planner or retirement specialist who offers personalized guidance.

2: What is the 70% rule for retirement?

The 70% rule is a guideline for estimating how much money you’ll need annually in retirement. It states that you should plan to have about 70%–80% of your pre-retirement yearly income to live on each year after you retire.

3: Is 1 crore enough to retire at 60?

It depends on your expenses and lifestyle, but for many people in today’s India, ₹1 crore is likely not enough to retire comfortably at 60. While ₹1 crore sounds like a large amount, the income it can generate is limited. If your expenses are modest and you live in a low-cost area, ₹1 crore could possibly suffice (especially if you have other support like a pension or you own your home with no debt).

However, factors like inflation, rising healthcare costs, and longer lifespans mean that ₹1 crore may get depleted faster than expected. In fact, financial planners often cite that the adequacy of ₹1 crore “depends on your annual expenses, healthcare needs, and family responsibilities”.

4: What is the 25x rule for retirement?

The 25x rule says that you should aim to save at least 25 times your annual expenses to have a high chance of a sustainable retirement fund. However, keep in mind, the 25x rule is a general guideline. It doesn’t account for additional income like pensions or rent, and it assumes 30 years of retirement. If you plan to retire early (needing the money to last maybe 40-50 years), many experts suggest using a bigger multiplier. And if you retire later or have some guaranteed income, you might get by with less.

5: What is the biggest risk in retirement planning?

The biggest risk in retirement planning is running out of money – essentially, not having enough savings to support your desired lifestyle for the full length of your retirement. This overarching risk is often driven by several factors: undersaving (not accumulating a large enough corpus), outliving your assets (longevity risk, living longer than expected), and unexpected expenses (like major medical costs or long-term care).

6: How to pick a financial planner for retirement?

Choosing the right financial planner for retirement is important – you want someone knowledgeable and trustworthy since your future is in their hands. Here are some steps to pick a good one: First, check their qualifications and credentials. In India, look for a SEBI Registered Investment Advisor (RIA) or a Certified Chartered Retirement Planning Counselor. Second, look for a fiduciary – this means the advisor is obligated to act in your best interest. Fee-only advisors (who charge you a fee and don’t earn commissions from product sales) are often fiduciaries and tend to give more unbiased advice.

Besides these, assess their experience, consider the services offered and check references or reviews.