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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.)

Fiery BJP-Shiv Sena clashes rock politics

Fiery BJP-Shiv Sena clashes rock politics

Devendra Fadnavis Eknath Shinde
Devendra Fadnavis Eknath Shinde

Mumbai: Another episode of the cold war between Chief Minister Devendra Fadnavis and his deputy Eknath Shinde was seen on Monday when the state legislature gathered for the day’s business. A visibly angry Shinde came down heavily on Satara Superintendent of Police Tushar Doshi for allegedly manhandling his trusted aide Shambhuraj Desai a few days ago. In a strongly worded statement he called the incident as “murder of democracy” leaving Fadnavis upset.


Doshi is known as a close confidant of the CM, who also holds the home portfolio.


A prompt action by Deputy Chairperson of the Legislative Council Neelam Gorhe also added to the fissures between ruling partners, the BJP and the Shiv Sena. Gorhe ordered suspension of Doshi with immediate effect based on Desai’s complaint made in the House. Jaykumar Gore, a BJP minister, was prompt to oppose the suspension. “Please revoke the SP’s suspension as it has been ordered without going into the fact finding,” he said.


The tussle was an aftermath of the bitterly fought election of Satara Zila Parishad president last week. The BJP had registered a surprise victory in a contest the Shiv Sena–NCP bloc expected to win. BJP candidate Pooja Shinde, wife of Shiv Sena MLA Mahesh Shinde, had emerged as winner in that election. Reports of cross voting and last minute defections altered the expected outcome. Shiv Sena leaders alleged that two councillors were stopped from voting after being detained by police while on their way to the ZP building.


Desai told the Legislative Council that was manhandled by police personnel in plain clothes as he tried to enter the ZP building before the said election. “I was beaten by the police when I was going into the ZP building. I was bleeding,” Desai said describing the incident as unprecedented in his four decades in politics.


The allegation prompted Gorhe to order the suspension of Doshi and to direct local authorities to preserve CCTV footage of the incident.


Judicial Probe

Shiv Sena and NCP leaders demanded a judicial probe and attacked the BJP led Home Department in the Council, accusing the administration of allowing the BJP to engineer the result. The party’s charge sheet included claims that BJP workers were allowed inside the ZP building while Sena members were blocked. Gorhe’s order escalated the matter into a full blown institutional confrontation.


The BJP pushed back, defending the police and urging that facts be ascertained before punitive action. Gore, the BJP minister who led the party’s campaign in Satara, said the police were responsible for maintaining law and order and that only ZP councillors should have been inside the building during the election. He warned against suspending an IPS officer without first obtaining factual reports and suggested that thousands of workers had entered the premises, complicating the security situation.


Split in Sena

What has made the episode particularly damaging for the Sena is the public split within its own ranks. Mahesh Shinde openly contradicted Desai and accused him of acting out of frustration after an alleged plan to realign locally with the Congress and NCP SP failed. Mahesh Shinde said the local Sena cadre had been prepared to remain with the Mahayuti alliance and rejected Desai’s purported designs. He alleged that some of the people accompanying Desai faced criminal charges, including kidnapping, and that a scuffle had followed a complaint lodged by the son of an alleged kidnap victim.


The confrontation echoes earlier intra party tensions that have simmered since the party’s split and the rise of Eknath Shinde as a dominant force in state politics.


Emotional Rift

CM Fadnavis said the matter would be investigated and that action would follow the findings. His assurance did little to calm the storm in the legislature, where Shiv Sena ministers staged protests and demanded stern action against police officers.


Opposition parties seized on the controversy to allege “Operation Lotus” tactics and to question the fairness of the election process.


Beyond the immediate disciplinary and legal questions, the Satara episode has revealed deeper strategic and emotional rifts within the ruling coalition.

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