How much money is truly enough to retire comfortably? It’s one of the most common questions people have in their mind and the answer isn’t just about hitting a number. In a recent conversation with Zee Business, Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, shared a disciplined, phased approach to building wealth — one that sets the foundation for a healthy retirement corpus.
“Just as no player would dream of walking into a match without net practice, no investor can hope to succeed without first mastering the art of saving,” Gupta said.
The 10-30-50 Rule: A Stepwise Path to Retirement
Gupta outlined the 10-30-50 rule, a simple but powerful framework to guide saving habits through life’s different earning phases. It’s not about starting big — it’s about starting early and building gradually.
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10 per cent in your 20s: In your twenties, Gupta recommends saving at least 10 per cent of your income. But if that feels difficult, she advises beginning with even 1 per cent.
“Salary packages are usually lower, and certain movies must be watched in theatres where the popcorn costs more than the tickets,” she said. “Start small, but start.”
30 per cent in your 30s and 40s: As income increases with promotions, career progression, or business growth, Gupta suggests stepping up to 30 per cent savings.
“This is the time to accelerate. Your inflow is better, and you can plan seriously for bigger goals.”
50 per cent after 40: In your forties and beyond — typically your peak earning years — Gupta recommends targeting at least 50 per cent savings.
“This is when you must think about your retirement, your children’s education, and long-term security,” she noted.
How Big Should Your Retirement Corpus Be?
Financial planners generally suggest building a retirement corpus of 20 to 30 times your expected annual expenses. For example, if you expect to need Rs 10 lakh annually in retirement, you should aim for a corpus of Rs 2 to 3 crore — adjusting for inflation and healthcare costs.
But Gupta warned that focusing only on the final figure could distract from the real issue: developing a consistent savings habit.
“Savings is a habit-driven approach. Initially, forming the habit of saving is more important than the percentage of money you save,” she said.
SDS: A Practical Hack Inspired by Taxes
Gupta also offered a smart behavioural trick to make saving easier: treat it like paying taxes. Drawing inspiration from TDS (Tax Deducted at Source), she coined the idea of SDS – Savings Deducted at Source.
“Any system which is automated or mandated becomes difficult to bypass,” she explained. “Just like taxes are deducted before your salary reaches you, savings should be too.”
By automating savings — through tools like SIPs or direct salary deductions — you remove the friction and emotional resistance that often stop people from saving regularly.
The Bottom Line: Start Now, Grow Steadily
The path to a secure retirement doesn’t start at age 50 — it starts the moment you begin earning. Whether your goal is Rs 1 crore or Rs 5 crore, the foundation is built on small, steady actions taken early.
As Gupta put it, “Saving is your net practice. The real game — investing and wealth creation — only begins once that habit is in place.”