How to save 1 crore by retirement

Discover effective strategies to accumulate 1 crore for retirement, gaining financial security and peace of mind. Unlock the secrets to successful savings.
How to save 1 crore by retirement
3 min
11 April 2024

Retirement planning is essential for several reasons. It ensures you have sufficient funds to cover your living expenses, healthcare requirements, and other financial obligations. It also helps mitigate the impact of inflation, ensuring that savings grow at a rate that outpaces inflation.

For many, reaching the Rs. 1 crore mark stands as a significant milestone for retirement. However, this may seem daunting due to uncertainties, complex financial decisions, lifestyle changes, and economic factors. If you are keen on investing but uncertain about how to start, follow this guide to explore effective strategies and actionable steps. Here are some of the best practices that allow you to retire with Rs. 1 crore.

  1. Start saving at an early age: Saving money from a young age allows more time for your investment to grow in value. Ideally, you should start investing in your 20s, around the time you finish your education. When you invest early and experience a loss on investment, you have more time to make up for it. It also provides a buffer against market fluctuations.
  2. Have an emergency fund: Setting up an emergency fund is an essential way to safeguard yourself from uncertainties. Even a small amount can help you recover quickly and get you back on track with your savings. Most experts advise saving an amount that can cover three to six months of your living expenses. You can do this by dedicating at least half of any new money, such as a raise, to your fund.
  3. Work long enough to become fully vested: In a retirement plan, vesting is a long-term financial commitment that involves discipline and patience. The tenure for vesting can be anywhere between 5 and 10 years. Once you reach the vesting age, you receive an annuity payout according to the predetermined frequency of the plan. In most cases, the frequency is somewhere between 30 and 80 years. In some plans, the annuity benefits are received immediately. This method could be the answer to the question, “How to save Rs. 1 crore?”
  4. Avoid high-cost funds: Low-cost funds may offer better returns than higher-cost funds. High-cost funds eat into your investment returns, reducing the amount of money that actually grows over time. Moreover, these funds involve high fees. In the long term, even small differences in fees can lead to significant reductions in returns. Choosing passive investments such as an ETF or an index fund can go a long way when opting for low-cost funds.
  5. Pick the right retirement account: Choosing an appropriate retirement account is crucial for maximising savings and optimising tax benefits. When exploring retirement plans, consider options such as pension schemes, Public Provident Fund (PPF), Employee Provident Fund (EPF) and National Pension System (NPS). Pension schemes are often given a high priority in India. Mutual fund investment through SIPs is also an effective way to save for long-term goals, and how you can have Rs. 1 crore by retirement age.
  6. Do not touch your retirement funds: Accessing your retirement funds prematurely can result in inadequate savings during retirement, potentially compromising your future financial stability. It can also attract penalties and taxes. Retirement accounts typically benefit from compounding, where earnings on investments generate additional earnings over time. Early withdrawals can disrupt this compounding effect. Hence, it is often advised to treat the early withdrawal of retirement funds as an absolute last resort.
  7. Save consistently: Saving consistently for your retirement is essential for securing your financial well-being. By setting aside a part of your income regularly, you can build a substantial retirement fund over time. This could be the easiest answer to the question, ‘How to have Rs. 1 crore by retirement?’ Whether through employer-sponsored plans such as EPF or personal investments such as PPF, the key is consistency. Some ways to ensure consistency are budgeting your expenses, automating your savings and paying off debts early to free up more money for savings.


Accruing or building a retirement corpus warrants financial discipline and years of investment. While it may seem daunting at first, retiring with Rs. 1 crore isn’t a monumental task. By following the steps outlined in this article, you can find the answer to the question, ‘How to save Rs. 1 crore?’

You can also rely on safe investment vehicles like fixed deposits. For example, Bajaj Finance FDs offer high interest rates of up to 8.85% p.a., which helps you plan for your retirement. To build the corpus you need, you must also be judicious with your expenditure and make calculated investment decisions.

Calculate your expected investment returns with the help of our investment calculators

Investment Calculator
SIP Calculator FD calculator SDP calculator Gratuity Calculator EPF Calculator
Lumpsum Calculator Step Up SIP Calculator Sukanya Samriddhi Yojana Calculator PPF Calculator RD Calculator


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.