Rs 1 cr corpus, Rs 60K monthly income at 60: Expert explains how Rs 20K SIP starting at 50 can achieve it in 10 years

Starting with a Rs 20,000 step-up SIP investment at the age of 50. aiming to build a corpus of Rs 1 crore by 60 and then withdrawing Rs 60,000 with a 5% annual increase for the next 25 years may sound like a tall order! But financial planner B Padmanabhan believes you can hit that goal by using his two-stage strategy.

In a post on his social media account on X, Padmanabhan states: “Is your age nearing 50? You might feel that you haven't saved meaningfully, but there's still time to make a difference. It's never too late to start saving.”

"If saving is challenging, consider taking on a part-time job to help reach your goals," Padmanabhan further says.


Padmanabhan's financial strategy relies on a 20% annual step up in SIP and solid returns both before and after retirement. Let's dive into the details of his plan.

Step up SIP investment plan to create Rs 1 crore corpus in 10 years-

Parameter	Details
Starting age for SIP investment	50 years
Monthly SIP amount (initial)	₹ 20,000
Annual step-up	20%
Investment period	10 years
Expected XIRR	13%
Total investment over 10 years	₹40.23 lakh
Expected corpus after 10 years	₹1.03 crore

How to draw Rs 60,000 income with an annual 5% step up from corpus

Parameter	Value
Invested corpus	₹1.03 crore
Expected rate of return	10% per annum
Withdrawal period	25 years
Monthly withdrawal (Year 1)	₹ 60,000
Annual step-up in withdrawal	5%
Total withdrawals over 25 years	₹3.5 crore
Remaining corpus after withdrawals	₹27 lakh

The plan seems solid since it offers hope to those who start late in building a substantial corpus. However, there are a few things to consider when beginning SIP investments at that stage in life.

Expecting 13% return for 10 years can be too ambitious

Financial experts generally recommend that most investors focus more on equity for their retirement corpus if they have a long investment horizon. Long-term investing allows an investor's corpus to absorb market shocks better.

Yet, as these investors approach retirement, experts suggest re-alllocating a part of their portfolio to debt or fixed income options for added stability. So, achieving a 13% annualised return from 50-60 years of age may prove to be challenging for many.

Step up SIP percentage

Financial experts generally recommend raising the SIP amount as your income increases. This can typically be around 5-10%. Even if someone starts investing at the age of 50 years and has a decent income at that point, stepping up SIP by 20% annually may not be easy. Therefore, the step up SIP amount target should be realistic.

Post-retirement investment return

Since a retirement fund might be the only source of income for someone after they retire, experts suggest taking minimum risk with this money. A 10% annualised return can be achieved by including some equity in the fund. However, if someone increases their withdrawal amount each year and the equity portion of their retirement corpus doesn’t do well, it could lead to quick depletion of the retirement corpus.

Inflation plays a key role

Inflation gradually erodes the value of money over time. Rs 60,000 monthly income might seem decent right now, but with a 5% inflation rate, its value will fall to approximately Rs 37,000 in 10 years. Likewise, Rs 1 crore will only be worth Rs 61 lakh in 10 years at the same inflation rate. Financial experts recommend that people should plan their retirement keeping inflation in mind.