Siddhi Sharma

Siddhi Sharma

Associate Money Coach, LXME NISM Certified

How to Retire at 50? - A Comprehensive Plan

Retirement Planning is one of the crucial aspects of financial planning that everyone needs to consider. It will help you take care of your post-retirement days and to lead a stress-free life.

As per the Women and Money Power 2022 survey, only 2 out of 100 women save for their retirement. That’s why especially for women, retirement planning is of utmost importance because-

  • women outlive men 
  • Women take career breaks due to maternity or family requirements.
  • Women earn less due to the gender pay gap

Thus, women need to save 38% more than men in order to maintain the same standard of living post-retirement.

Many women like you have a dream to retire early and enjoy their post-retirement life. So, in this blog let’s have a how to retire at 50.

How to go about planning for retirement at 50?

The steps of retirement planning include:

  • Setting retirement goals!
  • Calculating the amount of money you’ll need and the sources of retirement income,
  • Start investing to build your retirement fund!

Hence, a woman planning for retirement can consider building a diversified portfolio that will give inflation-beating returns, maintain stability, hedge your investment against inflation, and help you get fixed returns. A diversified portfolio helps in optimizing the returns and managing the risks.

When to start Retirement Planning?

The sooner you begin investing, the more time your money has to grow. The optimal time to begin retirement planning is while you are in your 20s or 30s as you can leverage the power of compounding. Compounding works like a miracle in the longer term. Along with this, when you are younger, you have fewer financial responsibilities and hence, can save and invest more.

However, if you wish to retire early then you’ll have to start investing as early as possible, if that’s not the case, then will have to invest a higher amount of money in later years.

For example: If Radha’s and Namrata’s age is 25 and they want to accumulate 1.5 crore and want to retire at 50 then how much amount will they be required to invest monthly?

Age25 Years25 Years
Starts investing at age25 Years30 Years
Corpus Required1.5 Crores1.5 Crores
Time Period till retirement25 years (50-25)20 Years (50-30)
Monthly investment required₹5,500*₹11,400*
*Assumed rate of return for calculation is 14% p.a.

*Mutual Funds are subject to market risks, read scheme-related documents carefully.

How do you create a Retirement Fund?

  1. Calculate the amount required for a smooth post-retirement life.
  2. Consider all important aspects like:
    • Possible age of retirement
    • Life expectancy
    • Inflation
    • Rate of return
    • Lifestyle, etc.
  3. Still not sure, use the LXME Retirement calculator!
  4. Once your emergency fund is in place, start preparing your retirement fund.
  5. The earlier you start planning your retirement, the higher corpus you can accumulate without straining your pockets!

Where can you create a Retirement Fund?

You can invest in various investment instruments according to your needs and goals.

Here’s a list of retirement investment options available you can consider-

LXME’s Long-Term Plan:

This is a mix of 75% Equity Mutual Funds and 25% Debt Mutual Funds, which is best suited for your long-term goals, and aims to deliver inflation-beating returns in the long term and maintain stability. The portfolio is well-researched, diversified, and curated by experts.

If in case you want to start investing in small amounts such as Rs.100 or more then you can check out LXME’s Rs.100 Equity and Debt fund which are well-researched and curated by experts.


You should invest in gold to hedge your investments against inflation. You can invest through gold mutual funds which are actively managed mutual funds which invest in Gold Exchange Traded Funds or through SGB (Sovereign Gold Bonds) which are government bonds issued by RBI on behalf of the Government of India, allocated in grams of gold.

You can check out the LXME ₹100 Gold fund which is well-researched and curated by experts.

Public Provident Fund –

PPF is a government-backed savings scheme open to everyone, parents can open an account on behalf of their child. It offers a fixed interest rate, currently at 7.1% p.a., and it’s revised every quarter by the government. PPF has a maturity period of 15 years, providing a secure investment option for long-term savings.

National Pension Scheme:

NPS is a pension cum investment scheme launched by the Govt. to provide security at the time of retirement to Citizens of India.  It is an attractive long-term saving avenue to effectively plan your retirement through investing in different asset classes available under NPS.

A few points to note while investing:

– Your retirement portfolio should consist of a mix of investment avenues to diversify your portfolio, manage risks, and optimize your returns.

– You can choose the proportion of equity and debt in your portfolio based on your risk appetite and goals, for example, if you have a high-risk appetite then you can invest a high proportion of your portfolio towards equity and a small proportion towards debt, and the rest portion towards gold or fixed income instruments like NPS, PPF and post office savings scheme which offer you fixed returns.

– Ideally, you can allocate 5-10% of your portfolio towards gold as it acts as a hedge against inflation and market volatility.

LXME Pro-tip: While you’re building your Retirement Fund, make sure you take adequate insurance (Health and Term) as early as possible and protect yourself and your loved ones!

“Planning is bringing the future into the present so that you can do something about it”

– Alan Lakein


Ideally, when should one start investing for their retirement?

Ideally, one should start planning and investing towards their retirement as and when they start earning. This way one can accumulate a huge corpus for retirement. If one starts early, they can start investing in small amounts, and with a time period, it can be increased.

What is the ideal retirement age?

Retirement is very subjective as it depends and varies from person to person. However, generally, 60 years can be considered as the retirement age.

Share this blog with your family and friends if you find it insightful!!

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