How does SIP help you save for retirement?

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Retirements are a significant event in anyone’s life. It entails not only retiring from your service but also the regular income. Most people do not plan their retirement either because they lack knowledge or think their retirement days are far away. A well-thought retirement plan can help people lead tension-free lives even after retirement.

Why is a retirement plan required?

Medical costs

Medical expenses for senior citizens are rising exponentially. Quality private healthcare prices have also increased in India. The high medical costs can be burdensome on retirement funds and cause stress.

No pensions

People are moving towards private jobs because of the high pay. However, there is no pension scheme to provide a safety net post-retirement. Therefore, it becomes imperative to plan for retirement beforehand.


This eats a significant chunk of your investment. So, besides planning for retirement, you also need to plan for inflation. While investing, it is also crucial to weigh the inflation part. Because your income may remain static, but the inflation figure keeps changing.

What are SIPs?How do they help?

SIP or Systematic Investment Plans are a way to invest a pre-determined amount at a set time in the Mutual Fund Scheme of their choice. The plans should be in place for the days after retirement. A SIP calculator is an excellent tool to calculate your SIPs if you want to compute how much is required to accumulate.

SIP can be a disciplined approach to investing because it forces you to monitor your spending and make regular investments. Moreover, by utilising Stock Market volatility, SIPs in Equity Funds also average your purchase’s cost (Rupee Cost Averaging).

Not one size fits all

Everyone has different financial needs, so it is essential that their financial planning be done accordingly. The best part about SIPs is that they can be tailored based on your risk appetite and investment needs.You can start from as small amount as Rs.1,000 per month. Moreover, the length of your investment means more accumulated corpus through compounding.

When you begin your retirement planning early, you can invest in as much Equity as possible, including riskier Equity subcategories like mid- and small-cap funds that have the potential to produce significant returns over the long term. However, if you have started a little later, your portfolio should combine Equity and Debt, also called Hybrid Funds.

The SIP calculator provided by different Mutual Fund houses can be used for computing the requisite amount. Another critical aspect is taxation. Mutual Funds are tax-friendly options in India to incorporate into your portfolio.


SIPs are a game changer if you plan for your retirement. The earlier you start, the more amount you can accumulate and live a stress-free life.

ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Ms. Mamta Shetty, Contact number: 022-40701022, E-mail address: [email protected]. Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

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