SIP Calculator: 25, 30 or 35 years — Plan your investments in SIP based on remaining years of employment

ZeeBiz WebTeam | Apr 21, 2024, 11:37 AM IST

SIP Calculator: Retirement planning along with career building is important for everyone. This is because in old age when you will not have any source of income, this accumulated capital will help you in running your daily activities. Be it for your daily food or your medicines etc., you will not need to ask anyone for financial support.

But do you know - proper planning for retirement not only makes you financially independent but can also make you a millionaire by your retirement age? One of the best ways is investing money through SIP i.e., Systematic Investment Plan. It is a method of investing in mutual funds allowing investors to contribute a fixed sum regularly, like monthly or quarterly, rather than a lump sum.

So, if you haven't considered it yet, start now. Here are the details of how much you need to invest in SIP as per your age and the remaining years of your job to become a millionaire by the age of 60.

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How to calculate

How to calculate

For an average person, the retirement age in India is 60. So, to determine the remaining years of employment subtract your current age from 60. For instance, if you're 25 years old, then 60-25 = 35 years, that means you have 35 years left to work. Similarly, if you're 30, then 60-30 = 30 years, which means you have 30 years left, and if you're 35, then 60-35 = 25 years, i.e., you have 25 years remaining. These are the years you have to accumulate your retirement fund. Now you need to know how much SIP to start according to your age.

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SIP Calculator: Age-25 | Job Remaining-35 years

SIP Calculator: Age-25 | Job Remaining-35 years

If you're 25 years old with 35 years remaining in your job career, starting a SIP with just Rs 1700 can make you a crorepati. Continuing a SIP of Rs 1700 for 35 years requires an investment of only Rs 7,14,000. At a 12 per cent interest rate, the SIP calculator projects a long-term capital gain of Rs 1,03,27,957. Thus, at 60, your total sum, including the invested amount and interest, will exceed Rs 1 crore.

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SIP Calculator: Age-30 | Job Remaining-30 years

SIP Calculator: Age-30 | Job Remaining-30 years

If you're 30 years old with 30 years remaining in your job career, then start an SIP of at least Rs 2,850 and continue it till the age of 60 i.e. 30 years. In 30 years, your total investment amounts will be Rs 10,26,000, yielding a long-term capital gain of Rs 90,34,254 at a 12 percent rate. By 60, you'll possess Rs 1,00,60,254.

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SIP Calculator: Age-35 | Job Remaining-25 years

SIP Calculator: Age-35 | Job Remaining-25 years

If you are 35 years old and have only 25 years left for the job then you must start SIP and the lowest recommended amount for this is Rs 5500. Continuing this for 25 years requires a total investment of Rs 16,50,000, yielding long-term capital gains of Rs 87,86,993. By 60, your total, including the invested amount and interest, will amount to Rs 1,04,36,993.

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