Retirement planning is essential for financial independence in your golden years. Starting early gives you a significant advantage, thanks to the power of compounding.
For instance, if you start investing ₹5,000 per month at age 25 with an annual return of 8%, you’ll accumulate around ₹1.5 crore by age 60. However, if you start at 35, the same investment grows to only ₹70 lakh.
Early starters can take higher risks, investing in equity mutual funds or stocks, which generally offer higher returns. They also have the flexibility to increase contributions gradually as income grows.
Late starters need to compensate by investing larger amounts or choosing high-growth options. Contributions to EPF, NPS, or PPF can help late planners catch up.
The key takeaway: start as early as possible to reduce financial stress and ensure a comfortable retirement.
