Home » Expert Advice On How Much Money You Should Have In Your Savings Account If You’re In Your 50s

Expert Advice On How Much Money You Should Have In Your Savings Account If You’re In Your 50s

Pre-sunset years i.e., when you are around 50 years of age, are considered one of the best phases of your life. By this age, you probably must have witnessed most of the events of life – several highs and lows, ups and downs and must be enriched with various memories and stories about life lessons.

This mid phase is a perfect time for you to reduce the pressure and burden of your work life and slowly begin enjoying life to the fullest with the wisdom and learnings you have acquired and the corpus you have generated over time. ­However, if you are one of those who have not yet accumulated an adequate corpus and have drained the funds in meeting your child’s higher education needs, marriage needs, or on vacation trips abroad, it is high time you begin your savings towards a stable financial future. Not doing so would propel you to continue with your work life post-retirement­.

Estimated here is the corpus you must aim at storing in your bank savings account by the age of 50. Continue reading to know –

Determine Your Financial Standing And Compute Your Corpus Requirement –

The corpus you must save depends upon the assets and savings you already have. Firstly, compute the corpus you already have in various financial avenues. Next, compute your daily mandatory expenses you need to incur to meet your lifestyle. Once you have these figures, take the help of an online SIP calculator to estimate how much you must invest monthly to accumulate the required corpus by the age of 50.

For instance, suppose, you zero in on a corpus requirement of Rs 1 crore by the age of 50 and currently you are 35 years with a savings of roughly Rs 20 lakh. To accumulate the remaining funds of Rs 80 lakh within a span of 15 years, you must ensure to invest a monthly contribution of Rs 22,000 at an assumed return rate of 13 per cent per annum through an SIP mutual fund.

Shift Corpus Towards Safer Fixed Income Instrument –

Note that, once you are two to three years away from reaching your corpus goal, you must slowly and steadily shift your equity exposure in the SIP mode to a safe and secure investment option like a savings account. Ensure to open new bank account for this purpose so that you do not mix your goal-oriented corpus with funds designated for meeting your current daily lifestyle expenses.

As there are different types of savings accounts in the market, to choose the ideal account, you must compare savings accounts based on different parameters such as minimum average balance requirement, offered interest rate, expenses charged on transactions, any additional benefits, and features, etc.

Shifting your funds from equity SIP investment to savings account provides benefits like higher capital preservation features than equities at a satisfactory interest rate. Ensure you opt for an account offering a higher bank interest on savings accounts so that you may reap better returns.


Now that you know how you must go around accumulating adequate funds by 50 years of age, there is another crucial point you must take note of. Make sure you factor in inflation while computing your corpus fund requirement as inflation has the potential to decrease your buying power over time. To compute inflation adjusted returns, you may use an online inflation calculator.

Peter Christopher

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