I’m 20 — Why Am I Thinking About Retirement?”
A Young Adult’s Guide to Building a Future You’ll Thank Yourself For The Weirdest Thought at 20.
It was one of those evenings when I’d just completed another freelance task, and my Groww app pinged me. “SIP successful,” it said.
Cool. But then I asked myself: “Am I just saving money… or saving a life?”
Not someone else’s. Mine — 40 years from now.
A strange thought to have at 20, right?
I had my insurance sorted. My goal-based SIPs were running smoothly. But that night, I was hit by a scarier question:
“What if I stop working one day — not by choice, but because I have to?”
What would I live on? Netflix? My CFA certificate?
That’s when I realized: Financial freedom isn’t a destination at 30. It’s a marathon till 60 and beyond.
What Retirement Really Means
Most people think retirement is at the age of 60. But according to me,
Retirement is when you stop earning… but not when your expenses stop.
It could happen due to:
Poor health
Legal retirement age
Or (if you’re lucky) you’ve built enough wealth to stop working
But no matter how it happens, the monthly bills will still arrive like clockwork.
And I didn’t want to be the kind of person who relied on my kids or sold my investments at the wrong time just to survive.
The Problem? No One Talks About This at 20
Let’s face it: At our age, nobody talks about retirement.
A survey said 77% of Indians don’t even plan for it. Over 50% think their kids will fund their old age. And 25% don’t know what they'll do at all.
That scared me more than inflation.
What surprised me most was how many working professionals in their 30s had no clue what their post-60 life would look like. Some didn’t even know their EPF balance. That was a red flag.
Why Start Now?
Let's take an example,
If you invest ₹10,000/year from age 20 to 60 at 15%, you end up with ₹2.68 crore.
But if you start at 40 and invest ₹1,00,000/year, you only get ₹1.63 crore.
Same returns. 10x investment. Yet less wealth. That’s the power of compounding.
Compound interest is back-loaded. The magic happens at the end. You start small, but time turns it massive.
That’s when it clicked: I might not have big money now, but I have time, and that’s the most underrated currency.
Time isn’t just a number. It’s a multiplier. And I decided to start multiplying early.
Defining My Retirement
So I made a silly little list titled “Mudra @ 60.”
I’ll live a healthy life (touchwood)
Probably love reading, walking, and sipping chai still
I’d want a house, help, and healthcare
I won’t want to depend on anyone
So I asked myself:
What kind of lifestyle do I want?
How long do I want it for?
How much would that cost in tomorrow’s money?
The answers were fuzzy, but that was okay. Because what mattered was not the precision, but the intention.
Let’s Do the Math
Let’s assume I need ₹35,000/month for a basic lifestyle today.
Adjusted for 6% inflation, that becomes ₹2.01 lakh/month at age 60.
I’ll live till 90, hopefully.
So:
₹2.01 lakh/month × 12 months × 30 years = A corpus of ₹4.88 crore
That number freaked me out.
But then I found a method.
How I Turned a Monster Number Into a ₹ Figure I Could Handle
Instead of panicking, I used a PMT calculator. With:
Retirement corpus goal: ₹4.88 crore
Time: 40 years
Expected return: 15% from equity mutual funds
I’d need to invest ₹1,050–₹1,100/month from now to hit that target.
That’s it. ₹1,100/month.
One Zomato binge less per week.
So I started a separate SIP called “MudraRetires2064.”
But Wait — What About Real Returns?
My FD offered 8%. But with inflation at 6%, the real return was just 2%.
That means:
My money will grow slower
I’ll feel richer but won’t be richer
That’s why I chose equity mutual funds. Yes, they’re volatile, but over 30–40 years? Nothing beats them for wealth creation.
I created an asset allocation:
80% equity funds (index + flexicap)
20% in debt for emergencies (liquid + RBI Retail G-Secs)
Confusions I Had (and Solved)
Isn’t 60 too far?
Yes. But that’s exactly why small SIPs work now. Waiting till 35 means needing 5x more.What if I die early?
That’s what term insurance is for. Retirement planning is for the opposite scenario — long life!Won’t I have PF/NPS?
Maybe. But I don’t want to rely on it. If it comes, it’s bonus.Can’t I use my house as a backup?
Selling your home when you're 70? Not ideal.Will medical costs derail this?
Only if I ignore health insurance. Which I won’t.
Trick I Use to Stay On Track
I set up a goal tracker in Excel. It includes:
Target corpus
Current SIP
Years left
Adjusted for inflation
A column called “Why I’m Doing This”
My reason? “To walk into old age with dignity.”
Every time I feel like skipping a SIP, I reread that line.
How I Increased My SIP Over Time
Started with ₹1,000/month. But then:
Took freelancing and added another ₹500
Every Diwali gift, ₹1,000 into the fund
Got a raise? Increased SIP by 10%
Now I treat SIP top-ups like salary hikes, they’re non-negotiable.
Lessons from the People Around Me
My uncle retired with a ₹80L corpus, but no health insurance. Most of it is gone now due to a bypass surgery.
My cousin earns ₹2L/month but hasn’t started planning retirement. Says, “Still young.” That worries me.
A retired neighbor relies on a ₹8,000 pension and his daughter’s help. Dignity compromised.
These stories reminded me: It’s not about income. It’s about intent.
Talking to My Family About It
I showed my retirement tracker to my dad. He smiled.
He said, “At your age, I never thought about this. You’re building peace.”
Later, I helped him calculate his own shortfall, and together, we started a monthly SIP for him too.
Now, our family chats sometimes include things like “goal corpus” and “retirement annuities.”
That’s new. And kind of beautiful.
Retirement Is an Emotion, Not a Number
It’s not about “₹5 crore.” It’s about:
Saying yes to that vacation at 65
Hiring help instead of relying on kids
Affording good healthcare
Having a quiet life, you’ve earned
I’m building that now — ₹1,000 at a time.
What I Tell My Friends
“You won’t feel the magic of retirement planning today. But your future self will hug you for it.”
I even made a game out of it:
Whoever hits ₹1 lakh in their retirement fund first, treats the group.
Now everyone’s investing.
The Toolkit That Helped Me
SIP Platforms: Zerodha Coin, Groww, Paytm Money
Retirement Calculators: Scripbox, Arthayantra, Excel PMT function
Funds I Prefer:
Nifty 50 Index Fund
Flexicap Fund
Liquid Fund (emergency)
Apps: Cube Wealth, ET Money (for goal tagging)
Books That Shifted My Mindset:
Retire Rich by P.V. Subramanyam
The Psychology of Money by Morgan Housel
Let’s Talk Money by Monika Halan
My Plan, Reviewed Every Year
Every March, I:
Review SIPs
Check corpus status
Adjust inflation and returns
Update “Why I’m Doing This” note
This yearly ritual keeps me on track. Like spring cleaning — but for the soul.
Final Word From a 20-Year-Old
I may not look like a “retirement planner.” I still binge-watch anime and crave pizza at 1 AM.
But I’ve already started preparing for the day I no longer have to work — and can choose to live.
Because if you don’t build a future, you risk borrowing it from someone else.
And that’s a price I never want to pay.