Imagine you’re 50, successful in your career, but suddenly it hits you, retirement is closer than you thought, and you’re not prepared. That uneasy feeling? It’s avoidable. The real question is, When Should You Begin Retirement Planning?
The Short Answer? Now! Â
Delaying retirement planning can cost you dearly. The earlier you start, the more years your money has to grow through compound interest, earning interest on both your contributions and your earnings. This simple truth is why beginning early isn’t just smart, it’s necessary.
The Power of Starting Early: A Cost Comparison
| Age You Begin | Monthly Savings Needed (To Save â‚ą8.3 Crores by Age 65)* |
| 25 | â‚ą25,000 |
| 35 | â‚ą50,000 |
| 45 | â‚ą1,00,000 |
| 55 | â‚ą2,50,000+ |
This table underscores the cost of procrastination. Waiting even a decade can more than double the amount you need to save each month. Plus, when you take inflation into consideration, this amount will continue to increase. That’s the high price of delaying retirement savings.
This is When to Get a CA Involved in Your Retirement Planning
Use a Retirement Planning Calculator to Find Your Number
Not sure how much you need? A retirement planning calculator can help. It analyses your age, income, savings rate, and retirement goals to provide a personalised savings roadmap. Whether you’re starting young or playing catch-up, it’s an essential step in your retirement planning journey.
Retirement Saving Options in India
| Investment Option | Risk Level | Key Benefit |
| SIP (Mutual Funds) | Moderate to High | Market-linked growth with compounding returns |
| Public Provident Fund (PPF) | Low | Tax-free returns; government-backed safety |
| Fixed Deposits (FDs) | Low | Stable, guaranteed returns |
| National Pension Scheme (NPS) | Moderate | Long-term retirement corpus with tax benefits |
| EPF (Employee Provident Fund) | Low | Employer and employee contribution; tax-deferred growth |
| Retirement Insurance Plans | Low to Moderate | Life cover plus maturity benefits for retirement planning |
Retirement Plan Example: Meet RajÂ
Raj, a 30-year-old professional from Pune, earns â‚ą8 lakh per year. Concerned about his future, he did some digging himself on retirement planning and decided to consult a financial expert. After analysing his goals, lifestyle, and inflation, the expert recommends that Raj start saving â‚ą12,000 per month.
Following the advice, Raj begins investing in a mix of equity mutual funds and the National Pension System (NPS). He also automates his investments and increases his contribution by 10% every year as his income grows.
Thanks to early planning and expert guidance, Raj is now on track to retire at 60 with a retirement corpus of over â‚ą7 crores, and still counting.Â
How a Chartered Accountant (CA) Can Help with Retirement Planning
A Chartered Accountant (CA) brings valuable expertise to your retirement journey. From analysing your income and expenses to optimising tax-saving strategies, craft ing a realistic and efficient retirement roadmap. They can also assist with cash flow projections, compliance, and choosing the right mix of saving instruments tailored to your long-term goals, ensuring your financial plan stays on track, year after year.
Ready to start planning your retirement? Explore Fello to connect with trusted experts who can help guide you.
Why Retirement Planning Isn’t Optional?
Financial planning isn’t about predicting the future, it’s about preparing for it. Retirement comes with uncertainties: healthcare costs, inflation, and life expectancy. A sound plan accounts for:
- Housing and living expenses
- Emergency funds
- Medical needs
- Travel or hobbies
- Taxes and inflation
These variables make planning not just helpful, but vital.
In ClosingÂ
You’ve heard the phrase “the best time to plant a tree was 20 years ago. The second-best time is now.” That applies perfectly to retirement. So, When Should You Begin Retirement Planning? Ideally, in your early 20s. But if that ship has sailed, the next best time is today. In fact, the next best time is the moment you finish reading this blog.
Regardless of your age or income level, the most important step is simply to start. Whether it’s opening your first retirement account or calculating your goals using a retirement planning calculator, start now, and thank yourself later.
