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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.)

Eastern Promise

In the long, uneven story of Mumbai’s transport modernisation, there are moments when intent finally aligns with necessity. The decision by the Mumbai Metropolitan Region Development Authority to revive work on Metro Line 14 is one such moment. It is, unequivocally, good news. But it will remain so only if urgency follows intent.


The proposed 43.69-km corridor from Kanjurmarg to Badlapur is a major corrective to a structural imbalance in Mumbai’s growth. For decades, the eastern periphery from Bhandup and Mulund to Ambernath and Badlapur has expanded in a manner that has far outpaced the capacity of its transport backbone. The result is a punishing daily ritual on the Central Railway suburban network, where overcrowding has become a design feature.


Metro Line 14 promises relief where it is most needed. With 24 stations, largely elevated, and multiple interchanges in linking with existing and proposed corridors such as Lines 4, 6 and 12, as well as suburban rail at Kanjurmarg and Badlapur, it is conceived as a connective transport tissue.


There is, however, a note of caution in the project’s recent history. The termination of the earlier contract with the Italian firm Metro Milano, following concerns flagged by Indian Institute of Technology Bombay, is a reminder that ambition must be matched by rigour. Faulty assumptions, whether about ridership, costs or engineering feasibility, can haunt projects long after they are commissioned.


Yet, prudence must not turn into paralysis. Mumbai has seen too many projects trapped in the amber of endless revision.


The stakes are high for the Maharashtra government here. With recent additions pushing the operational network beyond 100 km, the Mumbai Metro has now overtaken Namma Metro to become India’s second-largest metro system, behind the formidable Delhi Metro. This is no small achievement. It reflects a city finally beginning to invest at scale in mass transit. But rankings, while gratifying, are beside the point. The true test lies in whether the network reaches those who need it most.


In that sense, Line 14 is pivotal. It extends the promise of the metro beyond the island city and its immediate suburbs into the vast, fast-growing hinterland where affordability has pushed millions. These are long-distance commuters, often travelling from Badlapur or Ambernath, whose daily journeys can exceed two hours each way. For them, time saved is a restoration of dignity.


The government, therefore, must treat this project with the urgency it deserves. Timelines must be tight, accountability clear and decision-making must be swift. The administrative will to act on delays has been well-known in the past.


If executed with speed and care, Metro Line 14 could reshape commuting patterns, unlock new economic corridors and bring a measure of coherence to the region’s sprawl. This would be transformative in a city where distance has long dictated the destiny of hapless commuters. While the promise is evident, all that remains is the execution to live up to it. 


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