Author
LoansJagat Team
Read Time
10 Min
23 May 2025
Dhruv, a 25-year-old software engineer, was casually sipping his evening coffee when his dad, reading the newspaper, said,
“Beta, retirement planning jaldi shuru karo... warna baad mein sirf afsos bachega.”
Dhruv laughed it off at first, but something clicked. "Retirement? Meri toh abhi salary aayi hai!" Still, out of curiosity, he opened a calculator app and crunched some quick numbers.
Turns out, agar wo ₹10,880 har mahine invest kare, toh 45 tak ₹1,00,00,000 ka fund ban sakta hai!
But how? Can SIPs in mutual funds get him there? What about safe options like PPF or NPS? “Aur agar thoda late start hua toh? Ya phir sirf FDs pe bharosa kiya toh?”
Uski soch rocket ki speed se udne lagi – so many questions, so many options. But one thing was clear: he had to crack this code before time slipped away.
How did Dhruv plan his ₹1 crore retirement? Let’s find out in this blog.
Building a retirement corpus of ₹1,00,00,000 by investing in 2025 requires a strategic approach, considering your current age, investment horizon, risk tolerance, and expected rate of return. Here are several investment options to help you achieve this goal:
Creating a retirement corpus of ₹1,00,00,000 is possible through Systematic Investment Plans (SIPs), which are an effective way to invest regularly in mutual funds. With SIPs, you invest a fixed amount every month, and over time, your money grows through the power of compounding.
The following table shows how much you need to invest every month to build a ₹1,00,00,000 corpus, depending on the investment period and expected return:
Investment Tenure | Expected Annual Return | Monthly SIP Amount |
10 years | 12% | ₹44,640 |
15 years | 12% | ₹21,020 |
20 years | 12% | ₹10,880 |
This clearly shows: the earlier you start, the lower your monthly investment needs to be. For example, if you invest for 20 years, a monthly SIP of ₹10,880 is enough. But for just 10 years, you’d need to invest ₹44,640 every month.
Creating a ₹1,00,00,000 retirement corpus through Public Provident Fund (PPF) is a safe and tax-free option. PPF is a long-term investment scheme with a 15-year lock-in period, where you can invest from ₹500 to ₹1,50,000 per year. Currently (for April–June 2025), the interest rate on PPF is 7.1%.
The following table shows how much maturity amount you can get with different investment durations if you invest ₹1,50,000 every year at 7.1% interest:
Investment Duration | Annual Investment | Maturity Amount (7.1% Interest) |
15 years | ₹1,50,000 | ₹40,68,209 |
20 years | ₹1,50,000 | ₹66,58,288 |
30 years | ₹1,50,000 | ₹1,54,50,911 |
From this table, it is clear that to reach ₹1,00,00,000, you will either need to extend your investment duration or increase your annual contribution.
For example, if you invest ₹1,50,000 every year for 30 years, your maturity amount will be more than ₹1,50,00,000.
Another option for creating a ₹1,00,00,000 retirement corpus is through the National Pension System (NPS), which is a beneficial and tax-friendly option. NPS is a government-backed voluntary retirement scheme that helps individuals systematically plan for retirement. You can contribute monthly or annually, and your money is invested in various assets like equity, corporate bonds, and government securities.
Flexibility: You can choose how your money is invested based on your risk appetite, and you can also change your pension fund manager if needed.
Here is how much you need to invest every month based on different durations and expected returns:
Investment Tenure | Expected Annual Return | Monthly Contribution | Expected Corpus at Retirement |
20 years | 10% | ₹10,000 | ₹76,50,000 |
25 years | 10% | ₹6,000 | ₹76,30,000 |
30 years | 10% | ₹4,000 | ₹91,00,000 |
So, the longer you invest, the less you need to contribute monthly.
For example, if you invest ₹4,000 per month for 30 years at 10% returns, you can build a corpus of ₹91,00,000.
At retirement, you must invest at least 40% of the corpus in an annuity, which can give you a monthly pension of around ₹30,000.
NPS is a systematic and disciplined way to plan your retirement. With the right strategy and regular contributions, you can easily achieve your retirement goals.
Creating a ₹1,00,00,000 retirement corpus with Unit Linked Insurance Plans (ULIPs) can be an attractive option. A ULIP is a financial product that offers both insurance and investment benefits in a single plan. The premium you pay is split into two parts:
Here is how much monthly premium you need to pay to build ₹1,00,00,000, depending on time and return:
Investment Tenure | Expected Annual Return | Monthly Premium | Expected Corpus at Maturity |
20 years | 8% | ₹15,000 | ₹88,00,000 |
25 years | 8% | ₹10,000 | ₹95,00,000 |
30 years | 8% | ₹7,000 | ₹1,05,00,000 |
So, the longer you invest, the less premium you need to pay monthly to reach your ₹1,00,00,000 goal.
For example, if you invest ₹7,000/month for 30 years at 8% returns, you can build ₹1,05,00,000.
ULIPs give you the combined benefit of life insurance and investment. If you invest regularly and choose your plan as per your financial goals, you can easily achieve your retirement target of ₹1,00,00,000 or more.
Creating a corpus of ₹1,00,00,000 for retirement through conservative investment options like Fixed Deposits (FDs) and the Senior Citizen Savings Scheme (SCSS) offers safe and assured returns. These options are suitable for investors who want to avoid risks and keep their money secure.
Interest rates of some major banks:
Bank | Regular Rate | Senior Citizen Rate | Tenure |
SBI | 7% | 7.50% | 2-3 years |
HDFC Bank | 6.90% | 7.40% | 2-5 years |
Federal Bank | 7% | 7.50% | 1-5 years |
If you want to create a corpus of ₹1,00,00,000, here is how much you need to invest in SCSS and FD, assuming 20 years:
Investment Option | Annual Interest Rate | Required Principal for ₹1,00,00,000 in 20 Years |
SCSS | 8.2% | ₹21,20,000 |
FD (Average) | 7.5% | ₹24,50,000 |
For conservative investors, options like SCSS and FD offer safe and assured returns. However, to build a ₹1,00,00,000 corpus, combining them with other investment options is a better strategy.
Building a retirement corpus of ₹1,00,00,000 is a realistic goal if you start investing early and choose the right options. Systematic Investment Plans (SIPs) in equity mutual funds are a great way to grow your money over time, especially if you begin early and stay consistent.
Public Provident Fund (PPF) is another safe option with tax-free returns, but it takes longer to reach ₹1,00,00,000 unless you increase your contributions. The National Pension System (NPS) is good for retirement planning with tax benefits.
ULIPs combine insurance and investment, but they come with charges and market risks, so they need careful selection. Fixed deposits and the Senior Citizen Savings Scheme (SCSS) are safe but may not beat inflation, so they should be part of a bigger plan.
The key is to start as early as possible, stay patient, and mix different investments to balance risk and returns.
1. How much should I invest monthly to reach ₹1,00,00,000 in 20 years?
If you invest in equity mutual funds with an expected 12% return, you need around ₹10,880 per month. Starting early reduces the monthly investment needed.
2. Can PPF alone help me build ₹1,00,00,000 for retirement?
Yes, but it will take around 30 years with a ₹1,50,000 yearly investment at 7.1% interest. For faster growth, consider adding other investments.
3. What is the benefit of NPS for retirement planning?
NPS offers tax benefits and market-linked returns, but 40% must be used to buy a pension. Investing ₹6,000/month for 25 years can grow to ₹76,00,000.
4. Are ULIPs a good option for retirement savings?
ULIPs provide insurance and investment, but they have charges and risks. Investing ₹7,000/month for 30 years at 8% can give ₹1,05,00,000.
5. Can fixed deposits help me reach ₹1,00,00,000 safely?
Yes, but due to lower returns (around 7-8%), you need a bigger initial investment. A mix of FDs and other options works better for long-term growth.
About the Author
LoansJagat Team
We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?
Quick Apply Loan
Subscribe Now
Related Blog Post