Business
Senior Citizen Investment Plan: Rs 10 Lakh Can Become Rs 1 Crore In 20 Years
New Delhi: Many Indians dream of retiring with Rs 1 crore in their savings. While that goal might sound big, even a modest investment of Rs 10 lakh can grow into Rs 1 crore — if invested smartly and given enough time. Whether you’re nearing retirement or just starting your planning, understanding how compounding works can help you achieve this milestone comfortably.
How Compounding Turns Rs 10 Lakh Into Rs 1 Crore
Compounding is the process where your money earns returns, and those returns in turn start earning more returns over time. This snowball effect helps smaller investments grow into big amounts over the years.
Here’s how long it takes for Rs 10 lakh to become Rs 1 crore at different rates of return:
Annual Return Years to Reach Rs 1 Crore
6 percent 40 years
8 percent 29 years
10 percent 24 years
12 percent 20 years
15 percent 16 years
So, if you invest Rs 10 lakh in an option that gives 10 percent annual return, your money will grow to Rs 1 crore in about 24 years. However, if you manage to get 12% returns, you can reach Rs 1 crore in just 20 years — possibly before your retirement.
Example Calculation (10 percent Annual Return)
Let’s take a detailed example:
Initial Investment: Rs 10,00,000
Annual Return: 10 percent
Time: 24 years
Formula:
Future Value = Principal × (1 + r)^t
= Rs 10,00,000 × (1.10)^24
= Rs 10,00,000 × 9.84
= Rs 98,40,000 (approximately Rs1 crore)
This is the magic of compounding — your money multiplies almost 10 times without you having to add more capital.
Best Investment Options To Achieve Rs 1 Crore Goal
To reach Rs 1 crore before retirement, the choice of investment is crucial. Here are some popular options for different age groups and risk levels:
1. National Pension System (NPS)
Ideal for long-term retirement planning. NPS offers returns between 9 percent–12 percent depending on your equity allocation. If you invest Rs 10 lakh at 10 percent for 24 years, you’ll crossRs 1 crore comfortably.
2. Equity Mutual FundsThese are suitable for investors with moderate-to-high risk appetite. Historically, equity mutual funds have delivered 12–15 percent returns, meaning your Rs 10 lakh can become Rs 1 crore in 16–20 years.
3. Senior Citizens Savings Scheme (SCSS)
If you’re already retired, SCSS offers 8.2 percent returns (as of 2025). While it may not reach Rs 1 crore quickly, it’s safe and offers regular income.
4. Balanced Advantage or Hybrid Funds
These funds balance risk and reward by investing in both stocks and debt instruments, typically offering 9–11 percent returns. Ideal for those nearing retirement.
Tips For Reaching Rs 1 Crore Faster
Start early — the more time your money gets, the stronger compounding becomes.
Reinvest your earnings instead of withdrawing them.
Diversify across equity, debt, and pension funds.
Review your portfolio every year.
Final Takeaway
Turning Rs 10 lakh into Rs 1 crore isn’t a dream — it’s a calculation. With 10–12 percent consistent returns, you can achieve it in 20–24 years, well before retirement. Compounding rewards patience, and the earlier you start, the richer your retirement can be.
The wait is finally over for over 1 crore central government employees and pensioners. The Union Cabinet, led by Prime Minister Narendra Modi, has officially approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC). The Commission is expected to submit its recommendations within 18 months from the date of its formation. (Image: AI-Generated)
The Central Pay Commission is set up every few years to review and revise salary structures, retirement benefits, and service conditions. (Image: AI-Generated)
Historically, a new Pay Commission is implemented roughly every 10 years. (Image: AI-Generated)
The salary hike depends largely on the fitment factor, which is a multiplier used to calculate the revised basic pay. In the 7th Pay Commission, the fitment factor was 2.57, raising the minimum basic salary from Rs 6,000 to Rs 18,000. (Image: AI-Generated)
For the 8th Pay Commission, different fitment factors are being considered. Here’s how they could impact salaries: if the fitment factor is set at 1.83, the basic salary could rise from Rs 18,000 to around Rs 32,940. A slightly higher factor of 1.86 would increase it to Rs 33,480. However, if the government applies a more generous fitment factor of 2.47, the revised basic pay could reach Rs 44,460. These figures help illustrate how significantly the fitment factor influences salary revisions under the Pay Commission. (File Photo)
Gross salary includes Basic Pay, Dearness Allowance (DA) – linked to inflation, revised twice a year, and House Rent Allowance (HRA) – based on city category (30% for metro cities, 20% for Tier-2 cities, and 10% for Tier-3 cities). (Image: AI-Generated)
Let’s calculate the gross salary using a fitment factor of 2.47 and assuming: Basic Pay: Rs 44,460; DA: Rs 0 (for simplicity); HRA (30% for metro): Rs 13,338. The New Gross Salary = Basic Pay + DA + HRA, which is 44,460 + 0 + 13,338 = Rs 57,798. (Image: AI-Generated)
Business
Aadhaar Card Update: Is Aadhaar A Proof Of Date Of Birth Or Citizenship? Govt Issues Clarification
New Delhi: The Ministry of Communications has issued a latest circular on clarification on the Properties and Usage of Aadhaar by Unique Identification Authority of India (UIDAI).
The three-point clarification was issues regarding the properties and permissible usage of the Aadhaar number and related documents.
UIDAI said that an Aadhaar number may be used for establishing the identity of the Aadhaar number holder subject to authentication or offline verification.
Further, Aadhaar number or the authentication thereof, is not a proof of citizenship or domicile in respect of Aadhaar number holder.
UIDAI also added that Aadhaar number is not a proof of date of birth and hence, must not be used for establishing the date of birth of the Aadhaar number holder conclusively.
Members of the NASUWT union are set to be balloted on industrial action over class contact time.
The union accused the Scottish Government of failing to meet the SNP manifesto commitment ahead of the 2021 election of reducing contact time by one-and-a-half hours per week.
Announcing the move, NASUWT national official for Scotland Mike Corbett said teachers are “arguably worse off in terms of workload” than before the last election.
“The commitment on class contact time was a recognition by the Scottish Government that additional time away from the classroom was necessary to give teachers sufficient time and space to plan, prepare and assess pupils’ work in order to help students achieve their best and raise attainment.
“Since 2024 we’ve had agreements to work ‘at pace’ and the establishment of working groups by the Scottish Government and Cosla to make meaningful progress on class contact time reduction.
“But the reality is that teachers today are arguably worse off in terms of their workloads and working hours than they were in 2021 when this commitment was first made.
“A reduction in class contact time is as needed now, if not more so, than in 2021.
“It is regrettable that we have been forced to declare a trade dispute and move to a ballot in order to try to force the Government to give teachers the working conditions it itself acknowledges they require to do the job effectively.”
The union’s general secretary Matt Wrack said it had “exhausted all avenues” to reduce contact time, adding: “Where ministers and employers continue to fail our teachers, we will stand up for their right to working conditions which would enable them to deliver the highest quality of learning for our children and young people.”
A Scottish Government spokesperson said: “Ministers have been clear that reducing class contact will help support the time and space necessary for teachers, to allow them to drive improvement and reform in our schools and improve outcomes for their pupils.
“We are committed to working with teaching unions and Cosla to agree our approach to delivering a reduction in class contact time at pace.
“That is why we are providing local authorities with increased funding of £186.5 million to restore teacher numbers – this additional funding was agreed to by local government on the understanding that they make ‘meaningful progress’ with reducing class contact.
“Ministers respect union members’ right to withdraw their labour, but are disappointed that the NASUWT has taken this action while these constructive discussions are ongoing.”
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8th Pay Commission Update: What Government Employees Can Expect
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