Retirement Planning: Is It Possible To Save 10 Crore With 1 Lakh Monthly Salary See The Right Investment Maths And Strategy
Retirement Planning: For most young earners today, ₹10 crore is the new retirement benchmark. It is considered sufficient for financial security, children’s education plans, or premature retirement. But is this a realistic target? The answer has nothing to do with fortune or timing, but everything to do with income, rate of saving, and duration. For someone earning ₹1 lakh per month, it is an excellent goal, but the mathematics tells a modest yet robust tale.
What EPF Contributes to the Equation
Your Employee Provident Fund (EPF) is the bedrock of this plan—safe, tax-free, and invested automatically. According to the source, with a basic salary of ₹1 lakh a month, a 24% (employer + employee) contribution means ₹24,000 going into EPF every month. At an 8.25% annual rate of return and assuming an 8% annual increase in salary, this amounts to roughly ₹1.3–₹1.4 crore after 15 years. This is a risk-free, sure-shot component, but it still leaves you far short of the ₹10 crore mark.
What is Left for Your SIP to Do?
Suppose your post-tax take-home salary after excluding EPF is between ₹85,000–₹88,000, and your monthly spends are around ₹55,000–₹60,000. This leaves maybe ₹25,000–₹30,000 for mutual fund investment via SIPs. Even with a 10% annual step-up and a 12% average return, this SIP grows to about ₹2.3–₹2.6 crore in 15 years.
Here is a breakdown of the potential corpus after 15 years:
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Join on Telegram| Component | Approx. Corpus after 15 Years |
|---|---|
| EPF Corpus | ₹1.3 – ₹1.4 Crore |
| SIP Corpus | ₹2.3 – ₹2.6 Crore |
| Total Wealth | ₹3.5 – ₹4 Crore |
Adding your EPF’s ₹1.3 crore, you are looking at a total of ₹3.5–₹4 crore. It is not ₹10 crore, but it is still serious progress toward long-term financial freedom.
What It Really Takes to Hit ₹10 Crore
The ₹10 crore mark isn’t out of reach forever—it just needs scale or time. To get there in 15 years, you would need to invest around ₹1 lakh a month in total between EPF and SIPs. That is only possible if your salary is closer to ₹3–₹3.5 lakh per month, not ₹1 lakh.
For a ₹1 lakh per month earner, 20–22 years is the more sensible route, not 15. Extending your timeline lets compounding work in your favour. At the same SIP and EPF rate, you reach the ₹10 crore mark in Year 21 or 22.
How to Actually Get There Step by Step
- Start Small, Step Up: Start small, but raise your SIP every year. A 10% boost every year even on a ₹25,000 SIP makes a tremendous difference—it will nearly double your corpus vis-à-vis keeping it static.
- Reallocate Bonuses: With a growing salary, reallocate appraisals, bonuses, or freelance income to your SIP instead of lifestyle upgrades.
- Utilize VPF: If your organization allows, contribute to the Voluntary PF (VPF) to construct your safe haven.
The Bottom Line: For a ₹1 lakh monthly salary, ₹10 crore in 15 years isn’t realistic—but ₹3.5–₹4 crore absolutely is. Extend your horizon to 20 years, and you are in the ₹8–₹10 crore territory without unrealistic sacrifices. The key isn’t chasing numbers; it is being consistent with savings.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
