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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.)

Jain community ends dispute with Raj

Mumbai: Against the backdrop of an ugly controversy that erupted last week in Malad, a delegation of prominent office-bearers from a Jain community organisation called on Maharashtra Navnirman Sena Raj Thackeray, and tendered a written apology.


The delegation included Deepak Savla and K. N. Maniar, Trustees of the ‘Shree Dhanna-Shalibhadra Tapagach Shwetambar Murti Pujak Aradhak Jain Sangh’ Malad, who tendered the apology – in Marathi – to Raj Thackeray and profusely expressed regrets over an incident that created political ripples, said MNS general secretary Sandip Deshpande.


Hosting the delegation, a grim Raj did not miss the opportunity to give an earful to the delegation - with political overtones, but without taking names - “Just because there are two Gujaratis ruling at the Centre doesn’t mean you can do anything you want. Don’t antagonise us… If we lose our restraint, the repercussions can be serious.”


The apology concerns an event of June 17, held at Shivaji Chowk in Malad east where some unknown persons had stuck a Jain community flag on the ‘jiretop’ (royal headgear) of the statue of Chhatrapati Shivaji Maharaj installed there.


Apparently distancing itself now from the row, the Jain trustees claimed that “it was done by some anti-social elements” which had hurt the sentiments of all Marathis and admirers of Chhatrapati Shivaji Maharaj.


Following an agitation carried out by MNS Vibhag president Mahesh Manohar Farkase at the venue then, the organisers admitted to the faux pas and had promptly removed the flag.


While clarifying that there was no intention to hurt anybody’s feelings, they also tendered the apology on behalf of the entire Jain community to Chhatrapati Shivaji Maharaj and all the Marathi people of Maharashtra.


“That episode had hurt the sentiments of Raj Thackeray and the citizens of Maharashtra. We hereby tender an apology and assure that such a thing will not recur in future. Please accept our apology and forgive us,” urged the letter.


Raising last fortnight’s controversy when certain Jain groups had painted pavements and common society roads with white paint – a move dubbed by the MNS as ‘cultural terrorism’ - Raj expressed his ire and cautioned the community against behaving irresponsibly on its whims and fancies.


Raj reiterated the issue of upholding the Marathi pride to the delegation, pointing to other instances like defiling of Marathi signboards with white paint in certain places, that have led to needless tensions between Marathis and Jains.


“Such practices must be stopped immediately and the dignity of Marathi identity must be kept intact,” the MNS chief said firmly, to which the delegation nodded, and promised to maintain social harmony.


Ruling Shiv Sena Minister Pratap Sarnaik and Bharatiya Janata Party ex-minister Sudhir Mungantiwar warmly lauded the initiative by the Jain community to reach out to Raj, tender the apology and resolve the matter amicably.

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