How this works
Your current expenses are grown by inflation until retirement. The fund must then pay those expenses, rising with inflation, until age 85 while earning 7% a year. The SIP figure is what you need to invest every month until retirement to build that fund.
Tips
- Start early. Every 5 years of delay roughly doubles the SIP needed.
- Use EPF, PPF and NPS along with mutual funds.
- Keep health insurance separate so medical costs don't eat your fund.