As you move across the various stages in life, your financial goals and dreams may also keep changing. You’ll have a different target to achieve at each stage. This is why it becomes extremely important to draw up an adequate savings plan and stick to it. However, this is often easier said than done, primarily because most people have little to no idea about how much to save. If you’re in the same boat, then this guide will help you chalk up an age-related savings framework.<\/p>\n\n\n\n
Before we move on, it is important for you to understand that these values and percentages of income are merely averages. Technically, there are no clear-cut rules with respect to the percentage of income that you should save at every age since it basically depends on your individual financial goals and objectives. The following pointers are only meant to serve as a guidepost that can help you chart out your own plan.\u00a0<\/p>\n\n\n\n
<\/p>\n\n\n\n Depending on your age, it is recommended to have the following amount saved for retirement:<\/p>\n\n\n\n <\/p>\n\n\n\n The 50\/30\/20 rule helps you manage your monthly income. Here’s how it works:<\/p>\n\n\n\n Example:<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n Now that you know how much to save, there’s another major point that you should make note of. The above-mentioned age-related savings framework are merely rules of thumb that can be flexed around a little. Always remember, these guidelines only serve to help you put things in perspective. To save up adequately, you need to diversify your investment portfolio. And here’s where the Moneyfy app<\/a> by Tata Capital can help. You can use the app to start SIPs, invest in equity mutual funds, governmental bonds, liquid funds, instant redemption funds and more from the comfort of your smartphone. That’s not all. You can even account for your investment horizon, keep an eye on your portfolio, and instantly redeem your funds if needed using the investment app by Tata Capital.<\/p>\n\n\n\nAge group<\/strong><\/td> Average savings<\/strong><\/td><\/tr> Under 35<\/td> Rs. 17 lakhs<\/td><\/tr> 35-44<\/td> Rs. 34.5 lakhs<\/td><\/tr> 45-54<\/td> Rs. 59 lakhs<\/td><\/tr> 55-64<\/td> Rs. 60.2 lakhs<\/td><\/tr> 65-74<\/td> Rs. 83 lakhs<\/td><\/tr> 75+<\/td> Rs. 68.7 lakhs<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Saving Amount for Retirement by Age<\/strong><\/h2>\n\n\n\n
Age <\/strong><\/td> Amount<\/strong><\/td><\/tr> 30 years <\/td> 1x of total salary<\/td><\/tr> 40 years <\/td> 3x of total salary<\/td><\/tr> 50 years <\/td> 6x of total salary<\/td><\/tr> 60 years <\/td> 8x of total salary<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n What Is the 50\/30\/20 Monthly Budget and How Can It Help You Save Money? (With Example)<\/strong><\/h2>\n\n\n\n
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Age Group <\/strong><\/td> Median Monthly Salary (Rs.)<\/strong><\/td> 50% (Needs)<\/strong><\/td> 30% (Wants)<\/strong><\/td> 20% (Savings)<\/strong><\/td><\/tr> 20\u201324<\/td> Rs. 25,000<\/td> Rs. 12,500<\/td> Rs. 7,500<\/td> Rs. 5,000<\/td><\/tr> 25\u201334<\/td> Rs. 40,000<\/td> Rs. 20,000<\/td> Rs. 12,000<\/td> Rs. 8,000<\/td><\/tr> 35\u201344<\/td> Rs. 60,000<\/td> Rs. 30,000<\/td> Rs. 18,000<\/td> Rs. 12,000<\/td><\/tr> 45\u201354<\/td> Rs. 65,000<\/td> Rs. 32,500<\/td> Rs. 19,500<\/td> Rs. 13,000<\/td><\/tr> 55\u201364<\/td> Rs. 60,000<\/td> Rs. 30,000<\/td> Rs. 18,000<\/td> Rs. 12,000<\/td><\/tr> 65 and up<\/td> Rs. 50,000<\/td> Rs. 25,000<\/td> Rs. 15,000<\/td> Rs. 10,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Compounded Savings by Age 65 Based on the Age You Started<\/strong><\/h2>\n\n\n\n
Starting Age <\/td> 5% Savings Rate (Rs.)<\/td> 10% Savings Rate (Rs.)<\/td> 15% Savings Rate (Rs.)<\/td><\/tr> 25<\/td> Rs. 4.78 crore<\/td> Rs. 9.56 crore<\/td> Rs. 14.34 crore<\/td><\/tr> 35<\/td> Rs. 2.44 crore<\/td> Rs. 4.88 crore<\/td> Rs. 7.32 crore<\/td><\/tr> 45<\/td> Rs. 1.14 crore<\/td> Rs. 2.28 crore<\/td> Rs. 3.42 crore<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Conclusion<\/strong><\/h2>\n\n\n\n