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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.)

MNS red-flags BMC proposal to engage private player

Mumbai: A storm is brewing over the Brihanmumbai Municipal Corporation (BMC)’s plan to set up its first-ever 4-year nursing degree college - now mired in a row with a proposal to engage a private player for the prestigious project.

 

The civic body recently floated an e-tender to develop the proposed nursing degree college on a Design-Build-Operate-Transfer (DBOT) basis in five years, on a prime 2327 sq.mt plot on R. K. Patkar Marg, near BMC’s K.B. Bhabha Hospital, in Bandra west.

 

However, with only a single bidder in the fray, the deadline has now been extended till April 6. The lone bid has reportedly come from the JSW Foundation, which has quoted a one-time premium of Rs 5.29 crore, along with a nominal lease rent of Rs 3,000 pa for a 30-year period. Under the proposed model, the selected private partner will be responsible for designing, constructing, financing, operating, and maintaining the multi-storey campus. The contract will have an initial term of 10 years, extendable twice by 10 years each based on performance.

 

A pre-bid meeting was reportedly held on March 10, 2026, and the deadline for bid submissions is March 23, 2026. The project must comply with regulations set by the Indian Nursing Council (INC) and the Maharashtra Nursing Council (MNC).

 

The proposed institution - set to come up in a sprawling 1.23 lakh sq.ft facility - will have an intake capacity of 100 seats. The tender conditions that 40 pc of the seats will remain with the BMC, and the remaining shall be controlled by the private operator.

 

 

Slamming the proposal, Maharashtra Navnirman Sena (MNS) Bandra West Vibhag Pramukh Tushar M. Aphale questioned why the country’s biggest and richest civic body with a vast healthcare infrastructure is opting to ‘privatise’ a flagship educational-cum-health project.

 

In a stern letter to the BMC, Aphale argued that the BMC is fully equipped - financially and administratively - to build and run a nursing degree college independently.

 

Justifying his contentions, Aphale pointed out that the civic body already operates an extensive public health network, including 292 health posts, 192 dispensaries, 30 maternity homes, 16 hospitals including the mammoth KEM Hospital, five specialty hospitals, four medical colleges and a dental college. It also runs a nursing school offering a two-year diploma course.

 

“With such a massive infrastructure catering to the health of lakhs of Mumbaikars, what is stopping the BMC from launching its own degree college?” he told 'The Perfect Voice''.

 

Despite efforts, officials of JSW Foundation were not available for their comments.

The MNS leader warned that handing over the project to a private entity could restrict opportunities for local students and healthcare workers besides diluting public control over a critical training institution.

 

“We strongly demand that the tender must be scrapped immediately, failing which we shall launch an agitation. A MNS delegation will also meet new Municipal Commissioner Ashwini S. Bhide soon in the matter,” he said.

 

Status of nursing education

As per the DMER, currently in Mumbai, there is one college offering MSc Nursing 2-year course, one teaching Basic Nursing BSc 4-year course, one offering Post-Basic BSc 2-year course, and one teaching a year-long Post-Basic Diploma in Pediatric Speciality Nursing course. The SNDT Women’s University also offers a BSC Nursing degree course at its Churchgate campus.
 
Besides there are several other private entities offering different courses in nursing of varying durations in the city, indicating a dire need for a full-fledged nursing degree college for Mumbai.

 

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