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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.)

NCERT, Defamation and Academic Freedom

When state textbooks face judicial scrutiny

The Supreme Court of India’s recent direction to the National Council of Educational Research and Training (NCERT) to revisit and remove allegedly defamatory content from its textbooks raises a fundamental and somewhat uncomfortable question: where does academic freedom end and reputational harm begin when the state itself is the author of the narrative?


State Responsibility

At the outset, it must be acknowledged that textbooks prescribed by NCERT are not mere academic commentaries; they carry the imprimatur of the state and shape the intellectual foundation of millions of students. This institutional authority imposes a heightened duty of care. Unlike private publications, errors or insinuations in such textbooks cannot be casually dismissed as opinion; they risk acquiring the character of accepted historical or social truth. Therefore, when individuals or communities allege defamation, the claim cannot be brushed aside under the broad shield of academic autonomy.


Judicial Restraint

However, the Court’s intervention also invites scrutiny. Defamation, as understood in Indian law, requires a false statement made with the intent or likelihood of harming reputation. In the context of historical or sociological content, the threshold becomes far more nuanced. Academic writing often involves interpretation, critique, and even uncomfortable truths. If courts begin to adjudicate the correctness of such interpretations too readily, there is a real danger of creating a chilling effect on scholarship. Authors and institutions may resort to sanitised, non-controversial narratives, ultimately diluting the rigour of education.


The more prudent approach, in my view, lies in distinguishing between demonstrably false assertions and bona fide academic opinion. Where NCERT materials contain verifiable inaccuracies that directly harm identifiable individuals or groups, corrective action is not only justified but necessary. The state cannot be permitted to propagate falsehood under the guise of pedagogy. Yet where the content reflects a reasonable academic perspective, even if contested, judicial restraint becomes equally important.


Institutional Safeguards

Another dimension that cannot be ignored is procedural fairness. The process by which such content is reviewed and altered must be transparent, reasoned, and insulated from political or ideological pressures. If revisions are undertaken merely in response to litigation or public outcry, without a structured academic review, it risks undermining institutional credibility.


The Court, while exercising its jurisdiction, must therefore ensure that it does not inadvertently substitute expert academic evaluation with judicial determination.


This case also highlights the evolving intersection between constitutional values and educational content. Article 19(1)(a) guarantees freedom of speech and expression, which extends to academic discourse. At the same time, this freedom is not absolute and is subject to reasonable restrictions, including defamation. The challenge lies in maintaining a delicate equilibrium, protecting reputations without stifling intellectual inquiry.


It is equally relevant to consider the broader implications of such judicial directions. If every contested paragraph in a textbook becomes a potential subject of litigation, the education system may find itself in a perpetual state of revision. This is neither practical nor desirable. Instead, a robust internal mechanism within NCERT, comprising historians, legal experts, and educators, would be better suited to address such concerns proactively. Judicial intervention should remain a remedy of last resort, not the first port of call.


From a legal standpoint, the Supreme Court’s direction appears to be driven by the principle that state-backed publications must adhere to higher standards of accuracy and fairness. This is a sound proposition. Yet, its application must be carefully calibrated to avoid overreach. Courts are not academic bodies, and their legitimacy in such matters stems from ensuring legality, not determining historical truth.


The issue is not merely about the removal of a particular passage but about setting a precedent for how educational content is governed in a constitutional democracy. The state must ensure that its textbooks are accurate, balanced, and non-defamatory. Simultaneously, the judiciary must exercise restraint, intervening only where there is a clear violation of legal standards. Anything beyond that risks tipping the balance either towards an unchecked state narrative or excessive judicial control, both of which are equally undesirable in a system that values both truth and freedom.


(The writer is the managing partner at KS Legal & Associates. Views personal.)

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