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Planning for Retirement: Smart Tips to Follow

Updated on October 1, 2025 , 10738 views

Planning for retirement is the process to help you achieve your Financial goals, both during your working years and retired life. But, most people start their Retirement planning at their later stage of life i.e. around 40's. Well, it is important to understand that the earlier you start planning for your life post-retirement and start accumulating wealth, the sooner you will be able to live a worry-free life. Hence, here are the golden steps that one can follow to start planning for retirement.

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Benefits of Retirement Planning

Retirement planning helps you to provide financial security to your dependents (family members). This is done by making prudent investments during your working years. It helps you to maintain your desired lifestyle after you retire. Furthermore, it enables you to make the best use of your hard-earned money post-retirement. One of the key benefits of effective retirement planning is to cover for any emergencies arising from the uncertain events during the time to retirement or post-retirement.

Tips to Follow While Planning for Retirement

1. Retirement Savings- Save 10% of your Income

This is the first rule you need to religiously follow when planning for retirement. To initiate a retirement plan, working people can sign-up for the Employees’ Provident Fund (EPF). It is a retirement scheme wherein your employer deposits a certain amount monthly in an EPF account and this is deducted from your pay cheque. Those employees who are not covered by the EPF umbrella can opt for Mutual Funds. You can start exploring investment schemes under Mutual Funds, choosing the ones that suit your age profile and risk appetite.

2. Estimate Retirement Corpus by using Retirement Calculator

Retirement calculator is one of the ideal ways to estimate how much money one would need to save for their retired life. While using this calculator you would need to fill variables like current age, planned retirement age, regular expenses, Inflation rate and the expected long-term growth rate on investments (or equity markets etc). The sum of all these variable will help you to calculate the amount that you would need to save monthly. This amount will give you the money needed post-retirement given certain assumptions.

An illustration of retirement calculator is given below-

Retirement-calculator

According to this, you can estimate your monthly investments and make a retirement plan accordingly.

3. Diversify Investment Plan

Having a diversified Portfolio reduces the rate of risk significantly. The portfolio typically should contain assets across classes, namely –fixed Income instruments, stocks, cash assets and commodities (gold). It is advisable to make a long-term Investment plan at an early age, with a mix of low-risk assets like cash, deposit schemes, etc., along with high-risk assets like equity.

4. Opt for Insurance

While planning for Early retirement, one should consider Life Insurance and health insurance as an important element, as it gives you and your family income protection. Additionally, it provides financial support over uncertainties, both in business and personal life. There are various types of insurance policies if you want to explore like – Travel Insurance, Home insurance, liability insurance, etc. for relevant needs.

Insurance policies don't only support one during uncertainties or risks, but they are also a very efficient mode of investment when taken through certain policies (Endowment, etc). Insurance encourages savings through schemes that come with a maturity date.

5. Clear your Debt Early

This is an essential part of retirement planning. If you have some kind of loans or liabilities that need to be paid off, do it at the earliest. Most of the liabilities build up due to a use of credit cards. If you are using a credit card, make it a habit that you pay your monthly dues before the due date. Else, one can instruct the Bank to pay off the credit card outstanding on the due date, by debiting your bank account.

Best Retirement Mutual Fund Options

Equity Mutual Funds

An equity fund is a type of Mutual Fund that invests mainly in stocks. Equity represents ownership in firms (publicly or privately traded) and the aim of the stock ownership is to participate in the growth of the business over a period of time. The wealth you invest in Equity Funds is regulated by SEBI and they frame policies & norms to ensure that the investor’s money is safe. As equities are ideal for long-term investments, it is a good early retirement investing option. Some of the Best equity funds to invest are:

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
DSP US Flexible Equity Fund Growth ₹71.2539
↓ -0.18
₹1,00012.435.429.124.318.517.8
Franklin Asian Equity Fund Growth ₹34.3467
↑ 0.58
₹2609.62012.314.75.114.4
ICICI Prudential Banking and Financial Services Fund Growth ₹133.56
↑ 0.19
₹9,688-1.29.16.816.921.411.6
Aditya Birla Sun Life Banking And Financial Services Fund Growth ₹60.53
↑ 0.08
₹3,374-28.94.81721.58.7
Invesco India Growth Opportunities Fund Growth ₹100
↑ 0.02
₹8,125-1.414.64.325.123.237.5
Kotak Standard Multicap Fund Growth ₹84.877
↑ 0.53
₹53,626-2.110.71.718.219.316.5
Mirae Asset India Equity Fund  Growth ₹112.699
↑ 0.28
₹39,477-0.98.7-0.41416.712.7
Kotak Equity Opportunities Fund Growth ₹343.007
↑ 2.61
₹27,655-0.411-1.120.122.124.2
Franklin Build India Fund Growth ₹141.794
↑ 1.03
₹2,884-0.99.7-1.82933.727.8
DSP Equity Opportunities Fund Growth ₹615.617
↑ 3.18
₹15,356-1.46.8-2.620.822.723.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Oct 25

Research Highlights & Commentary of 10 Funds showcased

CommentaryDSP US Flexible Equity FundFranklin Asian Equity FundICICI Prudential Banking and Financial Services FundAditya Birla Sun Life Banking And Financial Services FundInvesco India Growth Opportunities FundKotak Standard Multicap FundMirae Asset India Equity Fund Kotak Equity Opportunities FundFranklin Build India FundDSP Equity Opportunities Fund
Point 1Bottom quartile AUM (₹1,000 Cr).Bottom quartile AUM (₹260 Cr).Upper mid AUM (₹9,688 Cr).Lower mid AUM (₹3,374 Cr).Lower mid AUM (₹8,125 Cr).Highest AUM (₹53,626 Cr).Top quartile AUM (₹39,477 Cr).Upper mid AUM (₹27,655 Cr).Bottom quartile AUM (₹2,884 Cr).Upper mid AUM (₹15,356 Cr).
Point 2Established history (13+ yrs).Established history (17+ yrs).Established history (17+ yrs).Established history (11+ yrs).Established history (18+ yrs).Established history (16+ yrs).Established history (17+ yrs).Established history (21+ yrs).Established history (16+ yrs).Oldest track record among peers (25 yrs).
Point 3Top rated.Rating: 5★ (top quartile).Rating: 5★ (upper mid).Rating: 5★ (upper mid).Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).
Point 4Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.
Point 55Y return: 18.49% (bottom quartile).5Y return: 5.06% (bottom quartile).5Y return: 21.43% (lower mid).5Y return: 21.52% (upper mid).5Y return: 23.16% (top quartile).5Y return: 19.27% (lower mid).5Y return: 16.72% (bottom quartile).5Y return: 22.14% (upper mid).5Y return: 33.70% (top quartile).5Y return: 22.74% (upper mid).
Point 63Y return: 24.25% (upper mid).3Y return: 14.74% (bottom quartile).3Y return: 16.91% (bottom quartile).3Y return: 17.02% (lower mid).3Y return: 25.11% (top quartile).3Y return: 18.18% (lower mid).3Y return: 13.97% (bottom quartile).3Y return: 20.12% (upper mid).3Y return: 28.96% (top quartile).3Y return: 20.76% (upper mid).
Point 71Y return: 29.11% (top quartile).1Y return: 12.25% (top quartile).1Y return: 6.83% (upper mid).1Y return: 4.80% (upper mid).1Y return: 4.34% (upper mid).1Y return: 1.73% (lower mid).1Y return: -0.44% (lower mid).1Y return: -1.15% (bottom quartile).1Y return: -1.77% (bottom quartile).1Y return: -2.60% (bottom quartile).
Point 8Alpha: -2.48 (lower mid).Alpha: 0.00 (upper mid).Alpha: -2.57 (bottom quartile).Alpha: -6.06 (bottom quartile).Alpha: 11.03 (top quartile).Alpha: 3.91 (top quartile).Alpha: 1.60 (upper mid).Alpha: 0.72 (upper mid).Alpha: 0.00 (lower mid).Alpha: -3.26 (bottom quartile).
Point 9Sharpe: 0.77 (top quartile).Sharpe: 0.49 (top quartile).Sharpe: 0.03 (upper mid).Sharpe: -0.18 (upper mid).Sharpe: 0.03 (upper mid).Sharpe: -0.37 (lower mid).Sharpe: -0.52 (bottom quartile).Sharpe: -0.51 (lower mid).Sharpe: -0.64 (bottom quartile).Sharpe: -0.78 (bottom quartile).
Point 10Information ratio: -0.62 (bottom quartile).Information ratio: 0.00 (lower mid).Information ratio: 0.32 (upper mid).Information ratio: 0.14 (upper mid).Information ratio: 1.26 (top quartile).Information ratio: 0.19 (upper mid).Information ratio: -0.17 (bottom quartile).Information ratio: 0.13 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.46 (top quartile).

DSP US Flexible Equity Fund

  • Bottom quartile AUM (₹1,000 Cr).
  • Established history (13+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 18.49% (bottom quartile).
  • 3Y return: 24.25% (upper mid).
  • 1Y return: 29.11% (top quartile).
  • Alpha: -2.48 (lower mid).
  • Sharpe: 0.77 (top quartile).
  • Information ratio: -0.62 (bottom quartile).

Franklin Asian Equity Fund

  • Bottom quartile AUM (₹260 Cr).
  • Established history (17+ yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: High.
  • 5Y return: 5.06% (bottom quartile).
  • 3Y return: 14.74% (bottom quartile).
  • 1Y return: 12.25% (top quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.49 (top quartile).
  • Information ratio: 0.00 (lower mid).

ICICI Prudential Banking and Financial Services Fund

  • Upper mid AUM (₹9,688 Cr).
  • Established history (17+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: High.
  • 5Y return: 21.43% (lower mid).
  • 3Y return: 16.91% (bottom quartile).
  • 1Y return: 6.83% (upper mid).
  • Alpha: -2.57 (bottom quartile).
  • Sharpe: 0.03 (upper mid).
  • Information ratio: 0.32 (upper mid).

Aditya Birla Sun Life Banking And Financial Services Fund

  • Lower mid AUM (₹3,374 Cr).
  • Established history (11+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: High.
  • 5Y return: 21.52% (upper mid).
  • 3Y return: 17.02% (lower mid).
  • 1Y return: 4.80% (upper mid).
  • Alpha: -6.06 (bottom quartile).
  • Sharpe: -0.18 (upper mid).
  • Information ratio: 0.14 (upper mid).

Invesco India Growth Opportunities Fund

  • Lower mid AUM (₹8,125 Cr).
  • Established history (18+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 23.16% (top quartile).
  • 3Y return: 25.11% (top quartile).
  • 1Y return: 4.34% (upper mid).
  • Alpha: 11.03 (top quartile).
  • Sharpe: 0.03 (upper mid).
  • Information ratio: 1.26 (top quartile).

Kotak Standard Multicap Fund

  • Highest AUM (₹53,626 Cr).
  • Established history (16+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 19.27% (lower mid).
  • 3Y return: 18.18% (lower mid).
  • 1Y return: 1.73% (lower mid).
  • Alpha: 3.91 (top quartile).
  • Sharpe: -0.37 (lower mid).
  • Information ratio: 0.19 (upper mid).

Mirae Asset India Equity Fund 

  • Top quartile AUM (₹39,477 Cr).
  • Established history (17+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 16.72% (bottom quartile).
  • 3Y return: 13.97% (bottom quartile).
  • 1Y return: -0.44% (lower mid).
  • Alpha: 1.60 (upper mid).
  • Sharpe: -0.52 (bottom quartile).
  • Information ratio: -0.17 (bottom quartile).

Kotak Equity Opportunities Fund

  • Upper mid AUM (₹27,655 Cr).
  • Established history (21+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 22.14% (upper mid).
  • 3Y return: 20.12% (upper mid).
  • 1Y return: -1.15% (bottom quartile).
  • Alpha: 0.72 (upper mid).
  • Sharpe: -0.51 (lower mid).
  • Information ratio: 0.13 (lower mid).

Franklin Build India Fund

  • Bottom quartile AUM (₹2,884 Cr).
  • Established history (16+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 33.70% (top quartile).
  • 3Y return: 28.96% (top quartile).
  • 1Y return: -1.77% (bottom quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: -0.64 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).

DSP Equity Opportunities Fund

  • Upper mid AUM (₹15,356 Cr).
  • Oldest track record among peers (25 yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 22.74% (upper mid).
  • 3Y return: 20.76% (upper mid).
  • 1Y return: -2.60% (bottom quartile).
  • Alpha: -3.26 (bottom quartile).
  • Sharpe: -0.78 (bottom quartile).
  • Information ratio: 0.46 (top quartile).

Retirement Schemes-Solution Oriented Mutual Fund Schemes

These are the retirement solution oriented schemes that will have a lock-in of five years or till the age of retirement.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
Tata Retirement Savings Fund-Moderate Growth ₹63.6415
↑ 0.22
₹2,115-3.47.3-1.814.714.619.5
Tata Retirement Savings Fund - Progressive Growth ₹64.1107
↑ 0.24
₹2,047-4.87.7-515.515.521.7
Tata Retirement Savings Fund - Conservative Growth ₹31.6629
↑ 0.06
₹177-0.942.28.67.59.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Oct 25

Research Highlights & Commentary of 3 Funds showcased

CommentaryTata Retirement Savings Fund-ModerateTata Retirement Savings Fund - ProgressiveTata Retirement Savings Fund - Conservative
Point 1Highest AUM (₹2,115 Cr).Lower mid AUM (₹2,047 Cr).Bottom quartile AUM (₹177 Cr).
Point 2Oldest track record among peers (13 yrs).Established history (13+ yrs).Established history (13+ yrs).
Point 3Top rated.Rating: 5★ (lower mid).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 14.62% (lower mid).5Y return: 15.49% (upper mid).5Y return: 7.52% (bottom quartile).
Point 63Y return: 14.66% (lower mid).3Y return: 15.54% (upper mid).3Y return: 8.59% (bottom quartile).
Point 71Y return: -1.76% (lower mid).1Y return: -4.99% (bottom quartile).1Y return: 2.20% (upper mid).
Point 81M return: -0.69% (lower mid).1M return: -1.15% (bottom quartile).1M return: 0.23% (upper mid).
Point 9Alpha: 0.00 (upper mid).Alpha: -0.19 (bottom quartile).Alpha: 0.00 (lower mid).
Point 10Sharpe: -0.56 (upper mid).Sharpe: -0.60 (lower mid).Sharpe: -0.78 (bottom quartile).

Tata Retirement Savings Fund-Moderate

  • Highest AUM (₹2,115 Cr).
  • Oldest track record among peers (13 yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 14.62% (lower mid).
  • 3Y return: 14.66% (lower mid).
  • 1Y return: -1.76% (lower mid).
  • 1M return: -0.69% (lower mid).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.56 (upper mid).

Tata Retirement Savings Fund - Progressive

  • Lower mid AUM (₹2,047 Cr).
  • Established history (13+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 15.49% (upper mid).
  • 3Y return: 15.54% (upper mid).
  • 1Y return: -4.99% (bottom quartile).
  • 1M return: -1.15% (bottom quartile).
  • Alpha: -0.19 (bottom quartile).
  • Sharpe: -0.60 (lower mid).

Tata Retirement Savings Fund - Conservative

  • Bottom quartile AUM (₹177 Cr).
  • Established history (13+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 7.52% (bottom quartile).
  • 3Y return: 8.59% (bottom quartile).
  • 1Y return: 2.20% (upper mid).
  • 1M return: 0.23% (upper mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: -0.78 (bottom quartile).

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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