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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 under fire over tree cutting plan

Mumbai: On May 29, the BMC decided to cut 1900 trees for Versova-Bhayandar Link Road. The decision saw a massive uproar by the opposition as well as the environmentalists concerned about the city’s rising temperature and unpredictable climate.


The BMC has claimed that Mumbai’s civilisation is growing rapidly, and to keep up the pace, the city needs more roadways. This is important as current infrastructure is lacking capacity to handle the traffic.


“To create this infrastructure, we will have to cut 1900 trees. We will replant 700 trees, and 1200 trees will be cut,” said Ganesh Khankar, the BJP group leader in the BMC. “We will plant 3000 plants in Panvel. We are also planning to implement the rule to plant at least one tree in the 45000 housing societies of Mumbai.”


Bansari Kothari, an environmentalist, claimed that this infrastructure may not be the best plan for the city. “The trees that will be compensated will be in Panvel. But the trees will be cut between Versova and Bhayandar. So the citizens of Versova and Bhayandar will lose their tree cover. Thus, it does not give proper justification. For the development of the coastal road that benefits only two to three percent of the population, we cannot cut trees that benefit 100 percent of the population,” she said.


The environmentalists have claimed that these trees are precious and invaluable. The age of some of these trees is 35 and 60 years and more. The authorities have promised to plant 3000 trees in Panvel, but these are just small saplings and will take at least 25 to 30 years to grow and become a tree.


Former mayor and opposition leader Kishori Pednekar said development is important but not at the cost of the environment. “Mumbai will become a desert. How will they stop that? Development is important but not by destroying nature. Development is necessary. We need metros and monorails but not at the cost of the environment,” she said.


Environmentalist Stalin D, president of an NGO Vanashakti, warned that the consequence of cutting trees at this rate can create many problems for the citizens of Mumbai. “India will be badly affected by the climate crisis; despite that, if we don’t take action, then it will be too late. They are planning to make the city like Dubai. The same heat in the afternoon where nobody can get out of the house. Everything is barren. People dying for water.”

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