Retirement planning has moved to the centre of personal finance as rising inflation and longer life expectancy make early investing critical. Speaking to Zee Business, experts Hemant Rustagi and Vishwajit Parashar explained that a Rs 10,000 monthly SIP, invested for 30 years at 12 per cent annual returns, can grow to nearly Rs 3 crore and with a 10 per cent yearly step-up, the corpus can reach around Rs 8 crore. This highlights how disciplined investing, goal-setting and the right asset mix can help build a strong retirement corpus even with a modest starting amount.

Many individuals ignore retirement planning until it is too late, often prioritising short-term needs over long-term security. Hemant Rustagi stressed that retirement is among the most important financial goals but also the most compromised. He advised investors to start early and build a clear roadmap, even if the initial investment amount is small. According to Rustagi, the biggest advantage of early planning is compounding, which significantly boosts wealth over time without requiring large contributions upfront.

Inflation impact explained

Vishwajit Parashar said investors often underestimate inflation while planning retirement. Parashar explained that a current monthly expense of Rs 50,000 can increase sharply over 10, 20 and 30 years. As a result, maintaining the same lifestyle after retirement may require a corpus of around Rs 8–9 crore. He noted that ignoring inflation leads to underestimating future needs, which can create a serious financial gap during retirement years.

Explaining the impact of disciplined investing, Hemant Rustagi shared a simple example on the show. He said a monthly SIP of Rs 10,000 over 30 years at 12 per cent annual returns can grow to nearly Rs 3 crore. If the investor increases the SIP amount by 10 per cent every year – known as a step-up strategy – the corpus can rise to around Rs 8 crore. Rustagi emphasised that consistency and gradual increase in investments are more effective than trying to invest large sums later in life.

On asset allocation, Vishwajit Parashar said a diversified portfolio is essential for long-term financial stability.

He recommended a mix of equity for growth, debt for stability and gold for diversification. He added that investors should gradually reduce equity exposure and increase debt allocation as they approach retirement. This shift helps protect the accumulated corpus from market volatility during the final years before retirement.

Parashar also outlined two key phases of retirement planning.

He described the accumulation phase as the working years, where individuals focus on building wealth through disciplined investing. The distribution phase, he said, begins after retirement, when the focus shifts to generating stable income while preserving capital through safer investment options. Understanding these phases helps investors align their strategies with their life stage and financial goals.

Experts emphasised that retirement planning begins with clear goal-setting. This includes estimating retirement age, calculating future expenses, factoring in inflation and healthcare costs, and planning for lifestyle needs such as travel or hobbies.