The Cost Of Delaying Retirement Planning

Compound interest is not linear. A rupee invested at 30 is not worth 1.2 rupees invested at 35 — it is worth closer to two. The maths of delay is brutal, and it is what makes retirement the most expensive goal to procrastinate on.

Assume a 12% long-run equity return and a target corpus of ₹5 crore at age 60. Starting at 30, you need roughly ₹14,000 a month. Starting at 35, roughly ₹26,000. Starting at 40, roughly ₹50,000. Starting at 45, roughly ₹1 lakh. The last five years always cost the most because compounding does most of its work in the final third.

India makes this harder in two ways. First, there is no meaningful state pension for the private-sector middle class — EPFO and NPS help but do not replace. Second, longevity is rising: a 60-year-old today can reasonably plan for 85, and post-retirement medical inflation runs at 12–14% a year.

The fix is small and immediate. Automate an equity SIP the day the salary lands. Step it up by 10% every year. Route bonuses to retirement before lifestyle sees them. Do not touch NPS Tier-I until 60. Treat retirement as a bill, not a residual.