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Someone is sitting in the shade today because someone planted a tree a long time ago. -Warren Buffett
Retirement planning is a crucial step in one’s life. You might experience medical emergencies and household expenses as a retiree at any time, which could deplete your resources. In this situation, you need to build a significant corpus that will last at least 30 years after you retire.
Let’s go through different factors to look at while Retirement Planning:
1. Age: One should ideally begin saving from an early age and keep some dedicated funds aside for retirement.
2. Monthly Expenses: An approximate figure for how much you would require to meet basic monthly needs post retirement
3. Lifestyle: If you have goals to travel after retirement or take up a club membership, you should factor these costs into your planning.
4. Risk: How much of a loss you can take in your portfolio depends on your risk tolerance. Your age, your salary, your financial objectives, and how comfortable you are taking risks all play a role in this.
If you want to acquire Rs 5 crores, how much should you be investing monthly in Mutual Funds via SIP?
Let’s take an example to understand the investment we would require at different ages to reach the 5 crore figure. Consider your retirement age to be 60 years, and you are investing in avenues that could give you 10%, 12%, and 14% returns per annum.
Ideal Breakup of Funds according to risk profile:
1. Low Risk: Here, a major chunk of your portfolio will go towards debt mutual funds whose risk profile is relatively lower. One can target investing in Long duration Mutual Funds like ICICI Prudential (LON:PRU) Long Term Bond Fund.
When considering Equity Mutual Funds only limit investment in Large Cap Funds like Mirae Asset Large Cap Mutual Fund and avoid risker funds like Medium Cap or Small Cap.
Ideal Breakup of Funds according to risk profile:
- Low Risk: Here, a major chunk of your portfolio will go towards debt mutual funds whose risk profile is relatively lower. One can target investing in Long duration Mutual Funds like ICICI Prudential Long-Term Bond Fund.
When considering Equity Mutual Funds only limit investment in Large Cap Funds like Mirae Asset Large Cap Mutual Fund and avoid risker funds like Medium Cap or Small Cap.
2. Medium Risk: Here, around 60% of your portfolio should be invested in Equity Mutual Funds and 40% in Debt. Investment in Equity Mutual Funds can be in a mixture of Large Cap and Mid Cap Funds such as SBI (NS:SBI) Large Cap and Midcap Funds to take advantage of higher returns due to higher risk in Midcap stocks. 
3. High Risk: Here, around 88% of your portfolio will be invested into Equity Mutual Funds. This high concentration makes it a risky investment. But, one can employ diversification within the Equity Mutual Fund class by allocating funds into different types of mutual funds such as Large Cap, Small Cap, Mid Cap, and Multi Cap Funds. The percentage of allocation depends upon your risk profile. For example: if you are comfortable taking higher risks then your portfolio can have a higher concentration of small-cap funds. 
Conclusion:
One of the most challenging aspects of creating a detailed retirement plan is striking a balance between acceptable return expectations and a desirable standard of living. The best course of action is to concentrate on building a versatile portfolio. To reflect shifting market conditions and your retirement goals, you should periodically update your retirement portfolio.