Many people postpone starting to invest due to the thought of needing to accumulate a large sum. Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, emphasizes that there is no single fixed amount required for retirement. The main question is how much money will be needed to maintain one's lifestyle after stopping work.
At the India Today Woman Summit 2026, Radhika Gupta noted that retirement planning often features large figures, such as 1, 5, 10, or 40 million rupees. These large sums can negatively affect some people, causing them to avoid starting investments if they believe achieving such a goal is impossible.
According to Radhika Gupta, before determining the capital for retirement, it is crucial to understand what your expenses will be after leaving your job. This depends on your lifestyle, place of residence, existing assets, and home condition. People in their 40s or 50s should calculate what expenses will remain unchanged if regular income from work ceases. If a person owns their home without a mortgage, other necessary expenses can be estimated by excluding housing costs.
It is not enough to simply set a retirement goal based on current expenses. These expenses must be projected into the future, including inflation and changes in lifestyle and needs over time. Thus, there cannot be a universal fixed amount for retirement; your goal must be determined based on future expenditure needs.
Radhika Gupta provided examples showing that the financial needs of a person living in a home in Mumbai differ from those of a person renting in a small town. Similarly, obligations to children also influence retirement capital. She stated that for a person owning a home in Mumbai, a capital of approximately 5 to 7 million rupees is sufficient. Meanwhile, for a person living in Delhi who has fully paid off their mortgage but whose children have not yet started working, a portfolio of 7 to 8 million rupees by age 60 could provide a better situation.
Even if the retirement capital amounts to millions, you do not necessarily have to start investing with a large sum. Radhika Gupta reported that mutual fund investments can begin with as little as 100 rupees. She linked investing to discipline and habit, noting that people sometimes spend more on snacks while watching movies than on investments. Her message is clear: the start of investing is more important than the amount.
For young investors, Radhika Gupta highlighted the 10-30-50 framework. According to this principle, at age 20, one should aim to invest about 10 percent of the income remaining after covering all expenses. The goal is to increase this share to 30 percent by age 30 and to 50 percent by age 40. This aims to build the habit of investing at an early age and increasing the investment amount as income grows. However, since everyone's income, obligations, and financial situation differ, this framework should be considered individually.
Young investors should not give up on starting to invest just because of huge figures like 40 million rupees. First, you need to understand your current expenses, account for future inflation, and then determine a goal using a retirement calculator. The retirement goal can change along with your life. It is important to regularly review investment targets in line with changes in income, expenses, family responsibilities, and lifestyle. Before making any decision about investing or trading, it is recommended to consult a qualified financial advisor based on your financial situation.