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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.)

Nine killed as car plunges into open well

Deceased belong to same family, six children included

Nashik: Nine members of a family, including six children, were killed after their car fell into an open well in Nashik district, police said on Saturday.


The accident occurred in the Shivaji Nagar area of Dindori town around 10 pm on Friday, an official said.


Chief Minister Devendra Fadnavis expressed grief over the deaths of children in the tragic incident, and said that he has ordered an immediate safety audit of open wells in public areas.


According to the police, the victims were returning home after attending a function at a banquet hall in the area when their car fell into a well on the roadside near the venue.


Personnel from the local police and emergency services arrived at the scene and retrieved the car and its occupants with the help of two cranes and swimmers around midnight.


The victims were members of the Dargode family from Indore village in Dindori taluka, the official said.


The bodies were brought to the government hospital in Dindori, the official said, adding that a case has been registered.


No Escape

According to information, the victims had attended a function organised by Wadje Classes and were returning home to Indore village (Dindori taluka) when the accident took place. The car went out of control and fell into an open well located along the roadside, which was completely filled with water, leaving no chance for escape.


After receiving information about the incident, Dindori Police, local administration, fire brigade personnel, and disaster management teams rushed to the spot. Rescue operations were challenging as the well was filled with water. The vehicle was eventually pulled out using two cranes around midnight. A team from the National Disaster Response Force (NDRF) also reached the location, and the rescue operation continued late into the night.


The incident has raised serious concerns over administrative negligence. Local residents have alleged that the well, located dangerously close to the road, had no safety measures such as fencing or protective barriers.

While speaking to ‘The Perfect Voice’, Inspector Bhagwan Mathure of Dindori Police Station stated that the well belongs to accused Rajendra Parvatrav Raje. Despite being aware that the well, located adjacent to a public road, posed a serious risk of accidents and possible loss of life, no necessary safety measures were taken. “There was no fencing, barricading, or protective structure around the well,” Mathure said.


Probe Ordered

State Disaster Management Minister Girish Mahajan visited the accident spot. He said that the administration has been directed to close the well, and that the government will provide assistance of Rs 5 lakh to the kin of the deceased persons.


The Nashik collector has been asked to probe the incident and submit an inquiry report, he said.


Speaking to reporters in Nagpur, Fadnavis termed the accident "extremely unfortunate".


Preliminary information indicated that the well had a low boundary wall and was in the middle of a frequently accessed area, he said.


The state government has announced financial assistance for the affected family, he said, adding that instructions have been issued to identify and review all wells situated on roads or in areas with public movement.


"Such locations must be audited to assess whether these wells are necessary and what safety measures can be implemented," he said, noting that a higher protective wall could have prevented the tragedy.


The deceased

Sunil Dattatray Dargode (32)

Reshma Sunil Dargode (27)

Asha Anil Dargode (32)

Gunvanti Sunil Dargode (11)

Shreyash Anil Dargode (11)

Shravani Anil Dargode (11)

Srushti Anil Dargode (14)

Samruddhi Rajendra Dargode (7)

Shraddha Anil Dargode (13)

 

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