It is the very important part of our life, if we ignore it or don’t plan it correctly, we will definitely going to make our life horrible during retirement period. So plan it well in time. If you plan it in your early age, you will get a lot of benefits because of compounding effect of the return percentage. At the same time you will have to invest or save less amount for bigger corpus.
For example, if you require Rs. 10000000 at 60 and your current age is 30 then you would require the investment of Rs. 1445 per month for 360 months at 15% but if you plan it on at 40 then to reach at Rs.10000000 you have to invest Rs. 6679 per month for 240 months. Mean almost 5 times more.
Now see the other difference what you invested in 30 years and 40 years.
if you start investment at 30 year for next 30 years then the total amount would be (Rs.1445X360 months) Rs. 520200 and if you start at 40 then you will have to invest (6679X240 months) Rs.1602960, more than 3 times.
Hope above calculation will help you to plan your retirement. If you feel the need of ther such financial matter, you can subscribe my youtube channel by clicking this link https://www.youtube.com/channel/UCqmUpKxl3k1t07Vd3FNIdZA/videos