Retirement Savings at 40: Comparing Mutual Funds and NPS for Corpus Growth
Starting retirement savings at 40 requires higher monthly contributions due to fewer compounding years, with a suggested approach of calculating future expenses and targeting a corpus accordingly. Comparing retirement options, a Rs 15,000 monthly investment over 20 years may yield a larger pre-tax corpus in mutual funds, while the National Pension System (NPS) offers tax advantages and lower costs, affecting post-tax returns and withdrawal flexibility. Both options have distinct benefits depending on individual priorities.