top of page

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 to launch AI in real estate sector

AI generated image
AI generated image

Mumbai: In a move aimed at modernizing urban governance and facilitating faster project clearances, the Brihanmumbai Municipal Corporation (BMC) is set to launch an advanced artificial intelligence (AI)-driven facility dedicated to the city’s real estate sector.


“The introduction of this AI-led facility marks a significant step towards streamlining processes and enhancing transparency in Mumbai’s real estate ecosystem. By leveraging technology, we aim to reduce approval timelines and improve overall efficiency for stakeholders,” BMC Municipal Commissioner Ashwini Bhide said while speaking at the Change of Guard ceremony of NAREDCO Maharashtra on Thursday.


Bhide said, “The introduction of this AI-led facility marks a significant step towards streamlining processes and enhancing transparency in Mumbai’s real estate ecosystem. By leveraging technology, we aim to reduce approval timelines and improve overall efficiency for stakeholders.”


Stating that the proposed facility would integrate multiple civic approval systems into a unified digital platform, enabling developers, architects and consultants to submit and track applications in real time, Bhide said, “By deploying AI tools for document verification, compliance checks and predictive analysis, the BMC aims to drastically cut down approval timelines, which have traditionally been a challenge for the sector.”


“The system would also bring greater transparency and accountability by reducing human interface and standardising procedures. The platform is expected to flag discrepancies, ensure adherence to development control regulations, and provide actionable insights to both applicants and civic authorities. The initiative aligns with Mumbai’s broader vision of becoming a technologically advanced and investor-friendly city. With real estate being a critical driver of economic growth and urban development, the AI-led facility is anticipated to boost investor confidence and accelerate project execution,” she added.


Speaking on the occasion, Mumbai Mayor Ritu Tawade said, “Mumbai is steadily transforming into a model city for ease - of -doing - business in real estate. Today, construction proposal approvals are streamlined within 45 days, driven by transparency and end-to-end digitization. This not only accelerates development; but also builds trust among stakeholders. We are committed to inclusive urban growth prioritizing women’s safety and encouraging developers to actively participate in creating essential infrastructure such as dedicated women’s sanitation facilities. Our vision is clear to get faster processes, safer spaces, and a more accountable system for all.”


The BMC is currently in the final stages of preparing the infrastructure and is expected to roll out the facility in phases. Training sessions and on-boarding support will also be provided to ensure smooth adoption by users. Once operational, the AI-enabled system is poised to redefine the way real estate approvals are managed in Mumbai, setting a benchmark for other urban local bodies across the country.


Comments

bottom of page