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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.)

Legislature chairs can direct, not dictate: Fadnavis

CM takes a tough stand after drama over deputy Speaker Neelam Gorhe’s order to suspend SP of Satara

Mumbai: Chief Minister Devendra Fadnavis on Tuesday drew a firm line regarding the constitutional powers of presiding officers in the state legislature. He categorically stated that the Speaker of the Legislative Assembly and the Chairperson of the Legislative Council do not possess executive authority. While they can issue directives to the state government, they cannot pass binding administrative orders. The ultimate right to scrutinize these directives and decide on their actual implementation rests solely with the state cabinet.


The Chief Minister made this crucial clarification during a heated debate in the Legislative Council. The house had witnessed an unusual impasse over conflicting instructions regarding the suspension of Satara Superintendent of Police Tushar Doshi. Deputy Chairperson Dr. Neelam Gorhe had previously directed the suspension of the SP and a few other police officials over their conduct during the Satara Zilla Parishad elections. However, Chairperson Ram Shinde subsequently held back these directives.


Intense Debate

This situation sparked an intense debate over the exact rights of the presiding officers. The issue was prominently raised in the house by Shiv Sena (UBT) leader Anil Parab, NCP-SP leader Shashikant Shinde, and BJP leader Pravin Darekar.


Replying to the debate, Fadnavis addressed the constitutional validity of the Chair’s powers. He emphasized that the Constitution clearly demarcates the duties and boundaries of the Legislature, the Executive, and the Judiciary. Executive rights are vested strictly in the cabinet. Fadnavis noted that while the cabinet is answerable to the legislature and always attempts to honour the Chair’s directives, there is no legal compulsion to execute them blindly. The cabinet has the right to independently scrutinize such instructions. If the government finds a directive lacking a complete factual basis, the cabinet can rightfully decline to act upon it.


Specific Example

The opposition leaders had specifically questioned whether presiding officers have the overarching right to directly suspend or dismiss senior IAS and IPS officers. To press their point, Parab and Shinde cited a recent controversy involving IAS officer and Maharashtra Pollution Control Board (MPCB) Member Secretary M Devendra Singh. The Chair of the Legislative Assembly had recently suspended Singh for skipping a crucial ministerial briefing. However, the state government later revoked this suspension after the officer issued a formal apology. The opposition demanded absolute clarity on the government’s stance regarding this power dynamic.


Fadnavis clearly distinguished between the two incidents to explain the rules. He noted that the initial action against the MPCB Member Secretary was well within the purview of the Assembly Chair. That specific offense involved an official failing to provide information for legislative business, directly impacting the functioning of the house. Conversely, the allegations against the Satara SP pertained to an electoral incident that occurred entirely outside the legislature. In such external matters, the Chief Minister reiterated, the executive branch must independently verify the claims made on the floor of the house. He concluded by firmly stating that presiding officers simply do not have the jurisdiction to pass final executive suspension orders for incidents happening outside the legislative framework.


Doshi proceeds on leave

The controversial police officer Tushar Doshi has gone on four days of unplanned leave, the Satara district police administration said. The move has led to speculation whether he has been sent on a forced leave.


Sena (UBT), Cong submit notice seeking removal of Gorhe

Opposition Shiv Sena (UBT) and Congress on Tuesday submitted a notice against Maharashtra legislative council’s Deputy Chairperson Neelam Gorhe to seek her removal from the post, accusing her of misusing her power by ordering suspension of an IPS officer.


The two opposition parties submitted the notice to the chairman of the council on the day Gorhe was given a farewell as her term is ending in May this year.


This is the second time that the Shiv Sena (UBT) has given notice seeking the removal of Gorhe, who was earlier aligned with Uddhav Thackeray-led party after the Shiv Sena split in June 2022 but later switched side and joined the Shiv Sena headed by Maharashtra Deputy Chief Minister Eknath Shinde.


The notice against Gorhe was signed by Shiv Sena (UBT) members Anil Parab, Sunil Shinde and Sachin Ahir, along with Congress’ Bhai Jagtap, Dhiraj Lingade and independent MLC Sudhakar Adbale. However, NCP (SP)’s Shashikant Shinde did not sign the notice. He had backed Gorhe’s move to suspend the Satara SP.


The notice against Gorhe is more of an optics as the budget session is concluding on Wednesday.

Gorhe’s fourth term as the member of the legislative council ends in May.


Congress leader raises issue of girls’ safety

Congress Legislature Party leader Vijay Wadettiwar on Tuesday claimed the law and order had deteriorated in Maharashtra, citing a case of six minor girls going missing in Chandrapur district.


Raising the issue in the state assembly through an adjournment motion, he demanded that a special search team be immediately constituted, and called for awareness measures in schools and colleges to ensure the safety of girls.


Wadettiwar referred to a case at Brahmapuri in Chandrapur where six minor girls, studying in classes 10 and 12, went missing recently.


“Only two of the girls have been traced so far, while four remain missing. The government spends crores on CCTV systems, but where are these mechanisms at the taluka level?” he asked.


The Congress leader further questioned police preparedness, saying, “When girls are being abducted and their mobile phones are switched off, what exactly is the police machinery doing?”


Wadettiwar also highlighted the impact of unseasonal rains and hailstorms in the Marathwada region, stating that thousands of hectares of rabi crops had been severely damaged in districts such as Nanded, Hingoli, Dharashiv and Chhatrapati Sambhajinagar.


“Farmers are dying, girls are not safe, yet the government seems more focused on chasing self-styled godmen. Can it not hear the cries of distressed parents and farmers?” Wadettiwar said.


Notably, Nashik-based self-styled godman Ashok Kharat, who claimed to be a retired Merchant Navy officer and was known as “captain”, was arrested on March 18 for rape and other offences on the complaint of a 35-year-old woman.


Shiv Sena MLA demands hospital

Shiv Sena MLA Rajesh More has demanded an establishment of a well-equipped 100-bed hospital at Nilje in Kalyan Rural constituency. The medical facility will provide significant healthcare relief to 77 villages in Kalyan Rural region, he said.


More on Tuesday submitted a letter to State Health Minister Prakash Abitkar requesting an establishment of a well-equipped 100-bed sub-district hospital at Nilje within the Kalyan Rural constituency.


“A demand for the setting-up of a hospital in Nilje has been advocated for a long period. The establishment of the Nilje sub-district hospital would provide immediate and high-quality healthcare services on a large scale to the residents of 27 villages in Kalyan Rural, 36 villages in the Shri Malanggad region and 14 villages that have been incorporated into Navi Mumbai Municipal Corporation,” said More.


“After apologising to the chair, I am saying this. The speaker and the chairman cannot step into the shoes of the executive. They have no power to step into the shoes of the executive. When the chair issues any direction, it is a direction issued according to given circumstances. The executive acts if there is any reality to it. If the facts are different from reality, the executive has the right to tell the legislature that the reality is different and its direction cannot be implemented. The chair’s direction cannot be a final word.”

Devendra Fadnavis, Chief Minister

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