5 Tips for Using SIP to Live a Comfortable Life After Retirement

5 Tips for Using SIP to Live a Comfortable Life After Retirement


While you might be enjoying the best time of your professional life, retirement is an unavoidable truth. To make sure that you live comfortably and financially independent retirement years, it is time that you start thinking about starting a SIP in a mutual fund.

5 Tips for Using SIP to Live a Comfortable Life After Retirement

Retirement is an unavoidable truth of life. While you might be young and at the peak of your career now, you will get old and even before you know it, you might be very close to your retirement age. If you want to live a comfortable and financially independent life even after your retirement, starting a SIP in a mutual fund can be a great option.

By allowing you to start investing with only Rs. 500 a month in many different types of schemes, SIP is one of the most rewarding, convenient, and flexible investment options, especially for long-term wealth creation. As a matter of fact, with regular investments in mutual funds, you might also be able to build a large corpus which can allow you to retire sooner than you’d expect.

The secret of achieving your long-term objectives like retirement planning with mutual funds lies in how well you have planned the investment. If you want to invest for your retirement through SIP, these are a few tips that can help-

  1. Calculate How Much You Might Need After Retirement

Start by first calculating how much money you’ll need to live a comfortable life after retirement. When calculating, make sure that you do consider inflation and other costs like child’s education or marriage, loans, etc.

This will allow you to reach an approximate amount you will need after you retire from your professional life.

  1. Calculate the SIP Amount and SIP Duration

Once you know how much money you need for your retirement, it should be easy to calculate the duration for which you need to invest and the SIP amount you should invest each month to reach your objective.

Eliminate the manual calculation and use an online SIP calculator to get more accurate results. These are easy online tools that provide a clear idea of how much you need to invest and for how long to reach your financial objectives.

  1. Select a Promising Equity Fund

While there are now many different types of mutual funds, it is the equity funds that are well-known for long-term wealth creation. These funds invest your money in equity and equity-related instruments, allowing you to generate handsome returns on a long-term basis.

Browse through the top equity funds from reputed AMCs to start investing. Check the historical performance of the fund and prefer investing in a consistent performer.

  1. Increase the SIP Amount Whenever Possible

While you can start investing through SIP with only Rs. 500 a month, make sure that you increase this amount as and when possible. It is generally recommended by Quality Sales Lead that you should increase the SIP amount by at least 10%-15% every 1-2 years.

This will allow you to earn higher returns and probably reach your retirement objective sooner than expected.

  1. Use SIP for Other Long-Term Goals

While starting a SIP for retirement is a popular option, you can start SIPs for other goals as well such as a child’s education or marriage or prepaying a home loan. This will ensure that you’re not required to use money from your retirement planning for other expenses and can reach all your objectives on time.


If you haven’t started investing for your retirement, maybe it’s time that you start getting serious about it. As a matter of fact, a lot of people in their 20s and 30s have already started their retirement planning in order to be better able to reach all of their lives objectives as sooner in life as possible.

Use the tips discussed in this post to start investing for your retirement and ensure that the years after the retirement are as rewarding and enjoyable as you’ve always imagined.

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