Blog3

How Much Retirement Corpus Do You Really Need in India?

by

When it comes to money, retirement is one stage of life that almost everyone worries about — yet very few plan for.

We all dream of a peaceful retirement: spending time with family, travelling, maybe even pursuing hobbies we never had time for. But the big question is — how much money will you actually need to live comfortably once you stop working?

And here’s the truth: retirement is not about how much you earn today, but how much you save and grow for tomorrow.

Why “one-size-fits-all” doesn’t work

There is no fixed number that works for everyone. For some, ₹50 lakh may be enough; for others, even ₹5 crore may fall short.

 Your retirement corpus depends on:

  • Your lifestyle – monthly expenses, hobbies, travel
  • Family responsibilities – spouse, children, dependent parents
  • Healthcare costs – medical inflation is rising at 12–15% annually in India
  • Inflation – that ₹1,00,000 today may only buy goods worth ₹30,000 after 20–25 years

The 70% Rule

A simple thumb rule: You’ll need about 70% of your last drawn monthly salary to maintain your lifestyle in retirement.


 Example: If your salary is ₹1 lakh per month, you should plan for at least ₹70,000 per month after retirement. Multiply that by 20–25 years, and you get an idea of the huge corpus needed.

The Power of Early Planning

Let’s look at an example:

  • Ravi (age 30) starts investing ₹10,000 per month in a retirement fund that grows at 10% annually. By 60, he builds a corpus of ₹2.2 crore.
  • Amit (age 40) starts the same investment of ₹10,000 per month. By 60, his corpus is only ₹76 lakh.
The 10 years delay costs Amit almost ₹1.5 crore. That’s the power of compounding.

Don’t Forget Healthcare

In India, healthcare costs are rising faster than general inflation. A surgery that costs ₹5 lakh today may cost over ₹15–20 lakh in 20 years. That’s why it’s crucial to:
  • Build a retirement corpus plus
  • Keep a separate health insurance policy active even after retirement

How to Build Your Retirement Corpus

In India, healthcare costs are rising faster than general inflation. A surgery that costs ₹5 lakh today may cost over ₹15–20 lakh in 20 years. That’s why it’s crucial to:
  • Start Early – The earlier you start, the lesser you need to invest monthly.
  • Use a Mix of Instruments – Mutual funds (for growth), annuity/LIC pension plans (for security), PPF/NPS (for tax benefits).
  • Review Every 3–5 Years – Inflation, lifestyle, and goals change. So should your plan.
  • Don’t Dip Into Retirement Savings – Keep them ring-fenced, no matter what.

Retirement is not about surviving — it’s about living with dignity and freedom. The best time to start planning was yesterday. The second-best time is today.

Ready to Plan Your Retirement?

If you’re unsure how much you need for a comfortable retirement, I can help.
and Let’s calculate your retirement number and design a plan that ensures peace of mind for you and your family.

Contact us today

Disclaimer

This blog is for educational purposes only and does not constitute financial advice. Investments are subject to market risks. Please consult a qualified financial advisor before making any investment decisions.
Tags: No tags

Comments are closed.