Step-Up SIP: Supercharging Your Retirement Corpus

Why increasing your SIP by just 10% each year with your salary appraisal can DOUBLE your final wealth.

Core Takeaways for Indian Investors

✓A normal SIP keeps the monthly investment amount constant for 15-20 years.
✓A Step-Up (Top-Up) SIP increases your monthly contribution automatically every year (e.g. by 10% in tandem with your annual salary hike).
✓Stepping up your SIP by 10% annually can result in an 80% to 100% larger maturity corpus over a 20-year span.
✓Helps you beat lifestyle inflation by capturing salary raises before you increase discretionary spending.

#1The Astonishing Math of a 10% Annual Step-Up

Let’s look at a 20-year comparison for an initial SIP of ₹10,000 per month at 12% expected return: - Case A: Flat ₹10,000 SIP for 20 years: Total invested = ₹24 Lakhs. Final Corpus = ₹1.00 Crore. - Case B: 10% Step-Up SIP (₹10,000 in Year 1, ₹11,000 in Year 2, ₹12,100 in Year 3, etc.): Total invested = ₹68.7 Lakhs. Final Corpus = ₹2.03 Crores! Your final wealth more than DOUBLES, while your monthly investment keeps pace naturally with your growing career earnings.

Interactive Simulator

SIP & Step-Up Compounding Calculator

See how a 10% annual step-up doubles your final maturity corpus

Knowledge Check: Test Your Understanding

1 Question

What is a Step-Up SIP?

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