Retirement Savings: Start Early, Earn More in India

Vishwajeet Goel of Pensionbazaar emphasizes that early retirement planning in India, even with modest contributions, leads to a substantially larger financial corpus due to the power of compounding. The 'cost of delay' highlights the significant opportunity lost when individuals postpone their retirement savings efforts. Starting a ₹5,000 monthly investment at age 30 could potentially grow to over ₹1.5 crore by retirement, whereas initiating the same plan ten years later might yield less than half that amount.

Goel explains that each month of postponed investment forfeits both the missed contribution and the compounding gains that would have accumulated over decades. While thirties in India are often focused on lifestyle upgrades and family needs, deferring retirement planning means late starters must save more aggressively or risk compromising their post-retirement lifestyle. Early investors, conversely, can strategically navigate market fluctuations and gradually de-risk their portfolios.

Pensionbazaar data illustrates that retirement security is built not by late-career earnings but by early-career investment discipline. Assuming a 12% annual return, the exponential impact of starting early becomes evident, underscoring the critical importance of timely financial decisions for long-term security.