That is where many people go wrong.
Because the number appears large and retirement seems far away, they postpone the first step. They plan to begin when their salary rises, the home loan reduces or family expenses become easier. But retirement planning does not reward good intentions; it rewards time.
Our experience of managing retirement savings across market cycles reinforces one simple lesson: a successful retirement plan is not built by finding a perfect number. It is built by starting early, contributing regularly and remaining invested for the long term.
Three factors build retirement wealth
Every retirement corpus depends on three factors: how much you invest, the return your investments earn and how long the money remains invested.
The first two can change. Your income may rise, your contribution can be increased and your asset allocation can be adjusted. But the years already lost cannot be recovered. Time is the only retirement asset that cannot be bought later.
A simple illustration shows how compounding gathers speed.
Suppose a person invests ₹30,000 every month and earns an illustrative annual return of 12%. The first ₹50 lakh may take a little over eight years. The next ₹50 lakh may take about four years, and the third ₹50 lakh less than three years. In the early years, most growth comes from the investor’s own contributions. Later, returns on the accumulated corpus become the larger driver.
This is why patience matters as much as the amount invested.
What can a ten-year delay cost?
Consider two individuals who both invest ₹10,000 every month until the age of 60. One starts at 25 and the other at 35. Their monthly contribution is the same; only the starting date changes.
| Investment approach | Illustrative annual return | Start at 25 | Start at 35 |
| Growth-oriented | 12% | ₹6.4 crore | ₹1.9 crore |
| Balanced | 10.5% | ₹4.3 crore | ₹1.5 crore |
| Conservative | 9% | ₹2.9 crore | ₹1.1 crore |
(Illustrative calculations assume regular monthly contributions and compounded returns. Actual market returns may vary.)
Across all three approaches, the person who starts ten years earlier builds a substantially larger corpus. The gap is not created by a bigger monthly investment. It is created by giving compounding ten additional years to work.
Can someone compensate by investing much more later?
Partly, but the required increase can be steep. At an illustrative return of 12%, a person starting at 35 may need to invest roughly ₹34,000 a month to approach the corpus created by investing ₹10,000 a month from age 25.
Starting late is not a reason to give up
An early start is a major advantage, but a late start is not a lost cause. The right response is not regret; it is action.
A late starter can still build a meaningful retirement corpus by increasing monthly contributions, stepping them up whenever income rises, reducing avoidable expenses and choosing an asset allocation suited to age, goals and risk tolerance. The biggest mistake is not starting late. It is delaying further after recognising the gap.
Why retirement needs a long-term plan
Retirement may last twenty years or more. During this period, healthcare costs can rise, regular income may reduce and inflation will continue to erode purchasing power.
For example, household expenses of ₹50,000 a month today could rise to about ₹2.76 lakh a month over 35 years if inflation averages 5% annually. A corpus that looks large in today’s money may therefore prove inadequate in the future.
This is why retirement planning should not be treated merely as a tax-saving exercise at the end of the financial year. It requires disciplined, long-term investing and periodic review.
Retirement from work need not mean retirement of investments
Many people assume that investing must stop at retirement. In reality, the retirement corpus may still need to support two or three decades of expenses.
The National Pension System now allows eligible voluntary subscribers to remain invested up to age 85.
Newer drawdown choices under the Retirement Income Scheme (RIS) can also help subscribers receive periodic income while the unutilised portion of the corpus remains invested in market-linked assets.
This gives retirees greater flexibility to balance regular income, liquidity and the potential for continued growth. However, the choice of withdrawal strategy should be based on individual income needs, risk appetite, healthcare requirements and other sources of retirement income.
India’s retirement opportunity
India’s pension ecosystem is expanding rapidly. As of 28 June 2026, the National Pension System and Atal Pension Yojana together had nearly ₹17.8 lakh crore in assets and about 9.95 crore subscribers.
Yet participation alone is not enough. Many people begin retirement planning only in their forties or primarily for tax benefits. By then, they may have already given up several valuable years of compounding.
We see this not merely as an industry growth story, but as a national responsibility: to help more citizens begin early, save regularly and remain invested for a financially secure retirement.
Starting is easier than many assume. Under the voluntary NPS framework, eligible individuals can begin with a modest contribution and increase it gradually. The important step is not writing a large first cheque; it is making the first contribution and continuing the habit.
A simple five-step approach
- Start now, even if the initial amount is modest.
- Automate the monthly contribution so retirement saving does not depend on memory.
- Increase the contribution whenever income rises.
- Maintain an age-appropriate mix of growth and stable assets.
- Review the plan at least once a year, but avoid reacting to every short-term market movement.
Final thought
The most useful retirement question may not be, “How much money will I need?”
It may be, “How many years of compounding do I still have?”
Retirement wealth is rarely created through one extraordinary investment. It is usually built through ordinary contributions made consistently over an extraordinary length of time.
The ideal day to start may have been earlier. The next best day is today.
(Data source: Pension Fund Regulatory and Development Authority (PFRDA), data as on 28 June 2026. Regulatory references are based on the prevailing NPS framework and PFRDA circular on Retirement Income Schemes dated 15 May 2026.)
(Pranay Ranjan Dwivedi is Managing Director & CEO at SBI Pension Fund.)
