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By:

Sayli Gadakh

11 November 2025 at 2:53:14 pm

Why Rs 1 Crore May Not Be Enough for Retirement

For most middle-class Indians, Rs 1 crore is a retirement milestone — but it may not be enough Bharat, 35, has a stable job, a growing income and a clear plan for the future. Discussing retirement with a friend, he says, “If I have Rs 1 crore by the time I retire, I’ll be financially secure.” For many middle-class Indians, Rs 1 crore remains a major financial milestone. But Bharath is not retiring today. If he retires at 60, his target is 25 years away, and inflation could significantly...

Why Rs 1 Crore May Not Be Enough for Retirement

For most middle-class Indians, Rs 1 crore is a retirement milestone — but it may not be enough Bharat, 35, has a stable job, a growing income and a clear plan for the future. Discussing retirement with a friend, he says, “If I have Rs 1 crore by the time I retire, I’ll be financially secure.” For many middle-class Indians, Rs 1 crore remains a major financial milestone. But Bharath is not retiring today. If he retires at 60, his target is 25 years away, and inflation could significantly reduce its purchasing power. Many retirement plans fail because they focus on a future number without considering what it will buy. If inflation averages 6% over 25 years, something costing Rs 1 lakh today could cost roughly Rs 4.3 lakh when Bharat retires. Rs 1 crore could therefore support a very different standard of living. Longer Retirements Earlier generations often relied on pensions, provident funds, family support and savings. That model is changing. Many private-sector employees may have no traditional pension, while longer life expectancy means savings may need to last 20 or 30 years. If Bharat retires at 60 and lives to 90, his corpus could have to support him for three decades. Retirement planning must therefore focus on sustainable income, not simply accumulation. Bharat currently spends Rs 60,000 a month. He expects expenses to fall after retirement as his children become independent and his home loan is paid off. But healthcare, insurance, medicines, household help, travel and lifestyle costs could rise. At 6% inflation, Rs 60,000 today would equal about Rs 2.58 lakh a month in 25 years. The Rs 1 crore target suddenly looks less comfortable. Health And Tax Bharat may have employer-provided health insurance while working but could lose it after retirement, just as healthcare needs increase. His plan should include health insurance, emergency and contingency funds, medical expenses and possible long-term care. Simply investing more is not necessarily the answer. At 35, Bharath has a long investment horizon and may be able to take greater investment risk, depending on his circumstances and risk capacity. As retirement approaches, capital preservation and liquidity become more important. Tax planning is also crucial. Interest income, capital gains, pension income and withdrawals may have different tax implications. With India’s Income-tax Act, 2025 coming into effect from 1 April 2026, long-term plans should be reviewed against the applicable tax framework. The key question is not, “How much will my investment statement show?” but, “What will my corpus be worth after inflation and taxation?” Look Beyond Property Bharat owns a house worth Rs 2 crore, but that does not mean Rs 2 crore is available for retirement. A house provides security and may appreciate, but its value cannot easily fund monthly expenses without changing living arrangements or using a financial product to unlock it. Retirement planning must therefore distinguish between net worth and income-generating assets. Instead of choosing Rs 1 crore as a target, Bharath should work backwards, considering current and future expenses, retirement duration, inflation, healthcare, other goals, investment returns and taxes. The real question is: “How much will I need to maintain my desired lifestyle without depending on my children?” Start Early Bharat’s biggest advantage at 35 is time. Compounding over 25 years can produce a dramatically different outcome from investing for only 10 years. A middle-class family does not need to start with a huge investment. It needs discipline and consistency. As income rises, retirement contributions should rise too, rather than allowing salary increases to disappear into lifestyle expenses. A practical plan should estimate future expenses, account for inflation, maintain a separate emergency fund, provide adequate health and life insurance, diversify investments and consider tax implications. It should also be reviewed as income, inflation, tax rules and family responsibilities change. Bharat now asks, “What lifestyle do I want after retirement, and how much will I need to fund it?” He starts investing early, increases contributions with salary hikes, controls debt and reviews his corpus regularly. He may ultimately need considerably more than Rs 1 crore. More importantly, he understands why. For today’s middle class, retirement planning cannot be based on a number that simply sounds impressive. Rs 1 crore may have been a significant milestone for an earlier generation, but inflation, healthcare costs, longer life expectancy and taxation could dramatically change what it provides decades from now. Retirement security depends not just on the corpus, but on its purchasing power and sustainable income. The lesson is simple: don’t ask, “Will I have Rs 1 crore?” Ask, “Will my retirement savings fund the life I want?” A large number today may not be enough tomorrow. (The writer is a Chartered Accountant based in Thane. Views personal.)

BMC plans parking curbs in narrow lanes

Mumbai: Amid mounting concerns over delayed emergency response in congested neighbourhoods, the Brihanmumbai Municipal Corporation (BMC) is preparing to enforce parking restrictions in several narrow lanes across the city, where indiscriminate on-street parking has increasingly emerged as a critical civic hazard. The move, expected to be implemented soon, is aimed at ensuring unobstructed access for fire engines and ambulances in densely populated pockets where even minor delays can have life-threatening consequences.


“Illegal parking is not merely a compliance issue; it reflects the structural gap between the rapid growth in vehicle ownership and the limited parking infrastructure available in our cities,” said Prashant Sharma, President of NAREDCO Maharashtra. “As urban centres continue to densify, there is a pressing need to integrate well-planned and technologically enabled parking solutions within city planning as well as new real estate developments. Adequate parking infrastructure will play a crucial role in ensuring smoother traffic flow and improving overall urban mobility,” he added.


Highlighting the urgency for scalable interventions, Ashish Majithia, Founder and CEO of Nextkraft Parking Technologies, said, “Mumbai’s parking crisis, especially in older and congested localities, underscores the need for innovative approaches such as automated and multi-level parking systems. Automated or mechanised parking should be installed at every public parking spot, which can significantly increase capacity, reduce dependence on on-street parking and ensure that critical access routes remain unobstructed. Alongside regulatory measures, adopting vertical parking infrastructure will be the key to building safer and more efficient cities.”


The civic concern is particularly acute in older parts of South and Central Mumbai, including Chandanwadi, Girgaon, Kalbadevi, Gaondevi, Tardeo, Mumbai Central, Nagpada, Agripada and Byculla, where over 240 narrow lanes have been identified. Civic assessments indicate that nearly 35 to 40 of these are so constricted that only a single vehicle can pass at a time, making them highly vulnerable during emergencies when every second is critical.


Commercial Zones

The situation is further exacerbated in high-density commercial zones such as Zaveri Bazaar and Kalbadevi, where wholesale trade activity leads to persistent vehicular congestion. Authorities warn that in the event of fires or medical emergencies, blocked access routes could result in severe loss of life and property, underlining the gravity of the issue as more than just a traffic inconvenience.


According to civic officials, proposed measures include introducing odd-even parking systems in select lanes and declaring complete no-parking zones in others, coupled with stricter enforcement against violators. However, residents and business owners have raised concerns over the absence of adequate alternative parking infrastructure, arguing that enforcement without viable substitutes could shift the burden rather than resolve the problem.


As Mumbai continues to grapple with rising vehicle ownership and shrinking urban space, the proposed restrictions bring into sharp focus a deeper civic challenge, balancing immediate regulatory action with long-term infrastructure planning. Experts maintain that unless supported by systematic investments in organised, high-capacity parking solutions, the city’s emergency access bottlenecks may persist despite stricter rules.

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