In the hustle of paying rent, clearing EMIs, and planning for weekend getaways, retirement often feels like a faraway dream. Especially if you’re starting your career or working on a modest salary, putting away money for your sixties may seem unnecessary, maybe even impossible.
Retirement savings aren’t just for those in high-paying jobs or those nearing their forties. Yes, even if you’re earning ₹20,000 or ₹30,000 a month, today is the right time to start. And if you ever find yourself in urgent need of funds, instant loans for working salaried individuals can provide quick financial support without disrupting your long-term goals.
Why Early is Better Than More
Let’s get one thing straight: When saving for retirement, time is your best ally, not income. Starting early, even with small amounts, can grow into a sizeable corpus over the years due to the power of compounding.
Let’s say.
You begin saving ₹2,000 per month at age 25. By age 60, with a reasonable yearly return of 10%, you might have more than ₹75 lakhs. But if you begin at age 35, you’d have to save nearly twice the amount each month to achieve the same amount.
So, when do you begin? Ideally, as soon as you start earning your first salary.
But What If You Can’t Afford It Right Now?
It’s understandable. In your twenties, you’re juggling living expenses, maybe sending money home, and trying to build a lifestyle. Still, even saving ₹500 or ₹1,000 a month makes a difference.
- Start with what you can: Build the habit.
- Automate the process: Set up a Systematic Investment Plan that is deducted from your salary account the day you get paid.
- Increase contributions with every raise: If your salary goes up by ₹5,000, try to push at least ₹1,000 more into your retirement savings.
Where to Park Retirement Savings on a Low Salary
You don’t need to hire a wealth manager or open a high-end trading account. India offers several simple, low-cost instruments tailor-made for salaried professionals. Additionally, if you’re facing a cash crunch, a loan for low salary can help bridge short-term financial gaps without complex paperwork or high income requirements:
1. Employees’ Provident Fund (EPF)
If you’re working a formal job, EPF will already be deducted from your salary.It’s a slow but steady way to build your retirement corpus. Avoid withdrawing it when you switch jobs; transfer it instead.
2. Public Provident Fund (PPF)
You can start with as little as ₹500 a year and invest up to ₹1.5 lakh annually. It’s safe, tax-free, and great for long-term savings.
3. National Pension System (NPS)
Even if you invest ₹500 a month helps establish a retirement-focused portfolio.
4. Mutual Funds through SIPs
If you have a risk appetite and are searching for better returns, equity mutual funds via SIPs would be the way to go. One can begin from as low as ₹100 monthly on platforms such as Groww, Zerodha, or Paytm Money.
Don’t fall into the “later” trap.
The most common excuse people give for not saving is, “I’ll start when I earn more.” But here’s the catch: Lifestyle inflation tends to match income growth. You get a raise, you upgrade your phone, you switch jobs, and you move to a better apartment. The truth is, you never really “feel ready” to save unless you make it a priority.
Retirement Isn’t Just About Money
Think about what retirement means to you. Travel, pursuing hobbies, or simply spending time with family without the pressure of a 9-to-5. That kind of freedom doesn’t come by chance; it requires planning. And that planning starts not when you’re 45 but as early as you can manage, even if it’s with spare change.
Conclusion
Start small; they say that is better than not starting at all. A small salary has been equated to a bucket, dropped drop by drop, for trying to save for retirement. However, what works with the drops is enough time; they eventually equal a pool. It is not how much you can save but how often and early.
The old saying goes, “The best time to plant a tree was 20 years ago. The second-best time is now.” So start today, even if it’s just with ₹100. Your future self will thank you.