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.)

Elite Enablers

The recent arrest of Ashok Kharat, a self-styled ‘godman’ accused of rape, blackmail and occult manipulation, has rightly horrified Maharashtra. Yet to view this as the story of a lone predator is to miss the larger, more uncomfortable truth. Men like Kharat do not rise in isolation. They are legitimised and ultimately shielded by networks of influence that extend deep into the state’s political and social elite.


The investigation, now in the hands of a Special Investigation Team, has widened its scope. Temple functionaries, staff and associates are being questioned, revealing the ecosystem within which Kharat operated. Kharat’s enterprise was one sustained by credibility, access and patronage of the elite. The more investigators dig, the clearer it becomes that the crimes alleged were enabled as much by social validation as by individual depravity.


That validation came, in no small measure, from high-profile figures who lent Kharat their presence and, by extension, their endorsement. Photographs, visits and public gestures of reverence were not incidental. They told followers and victims alike that this was a man to be trusted, even venerated.


The political storm that followed has centred on Rupali Chakankar, whose resignation, reportedly at the behest of Chief Minister Devendra Fadnavis, came only after intense public pressure. Her defence, that the association was old and rooted in personal belief, is revealing. It underscores precisely how figures like Kharat embed themselves within respectable circles, blurring the line between private faith and public responsibility.


But the issue goes beyond one resignation. To suggest that Chakankar alone bears responsibility would be convenient and misleading. The uncomfortable reality is that Kharat’s rise was facilitated by a broader class of enablers: politicians and social elites who either failed to question or actively promoted his persona.


Allegations now suggest that concerns about Kharat’s activities were not entirely unknown. Questions had been raised in the past; even journalists who probed too closely reportedly faced pressure. Yet these warning signs were ignored, dismissed or suppressed. The result was an environment in which a serial predator could operate with impunity, his authority reinforced by the very people who should have exercised scepticism.


The consequences of such negligence are now evident. Victims, already vulnerable, were drawn into a web of exploitation by the aura of legitimacy surrounding Kharat.


Focusing solely on the accused risks reducing a systemic failure to an individual crime. What is now required instead is a broader reckoning that examines how legitimacy is conferred and how institutions can be insulated from the distortions of personal belief and political convenience. Given the nature of the case, it can be safely assumed that more skeletons are likely to tumble from the closet.


Maharashtra prides itself on its rationalist traditions, yet the persistence of such episodes suggests a disquieting gap between aspiration and reality. As long as high-profile figures continue to patronise dubious godmen, lending them visibility and credibility, new Kharats will emerge to replace the old. 


Comments


bottom of page