If my savings are good enough for reaching my retirement goal

1. The funds you have selected are good. However, we are not aware about any open ended fund with the name of ICICI Prudential Growth in which you are supposedly doing a SIP of Rs 10,000 per month. Seems you have written a wrong fund name.

2. We think you are also not very clear about your investment horizon as you have mentioned doing these investment for a period of 10+ years. But again you have mentioned that these are for your retirement. Since you are only 28 years old, your retirement is far away from now.

3. However, if you are actually investing these for your retirement corpus then we must congratulate you as you have started saving for retirement at the right age! Let us now see how much retirement corpus this monthly savings of Rs 40,000 can create for you at different retirement ages?

When you are 50 years old - Rs 4.53 Crores assuming return @12.50% with total SIP contribution Rs 40,000 x 264 months or 22 years

When you are 55 years old - Rs 9.46 Crores assuming return @12.50% with total SIP contribution Rs 40,000 x 324 months or 27 years

When you are 60 years old - Rs 18.82 Crores assuming return @12.50% with total SIP contribution Rs 40,000 x 384 months or 32 years

4. The above sums might look very big in current context, but, remember the time horizon is 22, 27 and 32 years away from now and the inflation adjusted figures might be much more than your saved corpus.

Therefore, you should target an amount based on your current expenses and earnings and also figure out the age at which you want to retire and then check if the above holds good for you or not?

If required, you may start saving additional amounts monthly or just relax in case you fund that the current investments are good enough to reach your retirement milestone.

Hope the above helps! Thanks for writing to us!!