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How a One-Time Investment of ₹16.7 Lakhs Can Grow into ₹5 Crore for Retirement

Written by: Team Angel OneUpdated on: Mar 17, 2025, 3:00 PM IST
A one-time investment of ₹16.7 lakhs can grow into a ₹5 crore retirement corpus with strategic planning, time, and compounding. Learn how.
How a One-Time Investment of ₹16.7 Lakhs Can Grow into ₹5 Crore for Retirement
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Retirement is a phase of life where financial security can remove the stress of monetary dependence. A well-planned corpus ensures that retirees live on their own terms, free from financial worries. However, achieving this level of security requires meticulous planning and timely investments.

One of the key advantages of early retirement planning is the power of compounding. The earlier one starts, the longer the investment has to grow, significantly boosting the retirement fund. But how much is required to build a comfortable retirement corpus? Let’s explore.

Understanding the ₹5 Crore Retirement Corpus

Let’s analyse two scenarios where an investor starts at the age of 30, aiming for a ₹5 crore corpus with an annual return of 12%.

Scenario 1: Retiring at 55 (25 Years of Investment)

  • Current Age: 30
  • Retirement Age: 55
  • Investment Duration: 25 years
  • Expected Annual Return: 12%
  • Required One-Time Investment: ₹29.41 lakhs

In this case, to accumulate a ₹5 crore corpus by 55, an investor would need to make a lump sum investment of ₹29.41 lakhs today.

Scenario 2: Retiring at 60 (30 Years of Investment)

  • Current Age: 30
  • Retirement Age: 60
  • Investment Duration: 30 years
  • Expected Annual Return: 12%
  • Required One-Time Investment: ₹16.7 lakhs

If an investor extends their retirement age to 60, the required one-time investment drops significantly to ₹16.7 lakhs. The additional 5 years of compounding makes a substantial difference in wealth accumulation.

Key Takeaways from the Scenarios

  1. Time is the greatest asset – The earlier the investment, the lower the capital required to achieve the same goal.
  2. Compounding plays a crucial role – Even five extra years can reduce the required initial capital drastically.

Final Thoughts

Retirement planning is an essential part of financial well-being. While a one-time investment of ₹16.7 lakhs can grow into ₹5 crore in 30 years, the key lies in starting early, being disciplined, and leveraging compounding.

Each investor should assess their financial goals, risk tolerance, and retirement timeline before deciding on an investment strategy. With the right approach, financial independence in retirement can be a reality rather than a dream.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 17, 2025, 3:00 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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