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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.)

Power Boundaries

Few things unsettle a government more than a constitutional grey zone exposed in full public view. That ambiguity was recently dragged onto the floor of Maharashtra’s Legislative Council and briskly tidied up by Chief Minister Devendra Fadnavis. His intervention, delivered amid a rancorous debate, did more than settle an immediate dispute. It reaffirmed a basic, if often blurred, principle that legislatures may question and even censure, but they do not govern.


At the heart of the row lay a seemingly procedural question: can presiding officers of the legislature order the suspension of senior bureaucrats? The immediate trigger was the fate of Satara’s Superintendent of Police, Tushar Doshi. Acting on complaints over alleged conduct during a local body election, Deputy Chairperson Dr. Neelam Gorhe directed his suspension. In an unusual twist, the Council’s Chairperson, Ram Shinde, appeared to hold back the order, creating a spectacle of competing authorities within the same chamber.


The confusion was political. Opposition leaders, including Anil Parab and Shashikant Shinde, pressed the government to clarify whether such directives carried binding force. If presiding officers could directly discipline officials, it would create a powerful new lever for legislative oversight and, potentially, political theatre.


However, Fadnavis’s reply was unequivocal. India’s Constitution, he noted, draws clear lines between the legislature, the executive and the judiciary. The power to administer - to hire, fire, suspend and discipline - rested squarely with the cabinet, he reminded. Presiding officers may issue directions, but these are not self-executing decrees. The government may consider them, even respect them, but it is under no legal compulsion to obey without scrutiny.


Fadnavis’ clarification of this distinction preserves the chain of accountability. Civil servants answer to the executive, which in turn answers to the legislature. To allow presiding officers to bypass the executive would collapse that hierarchy, creating a muddled system in which authority is exercised without responsibility. Legislative indignation, however justified, cannot substitute for administrative due process.


Such theatrics underscore a deeper unease. In an era of heightened partisanship, legislatures are increasingly tempted to extend their reach beyond scrutiny into execution. The allure is obvious as direct action offers immediate political dividends. The costs, however, are institutional.


By refusing to endorse blind compliance with the Chair’s directives, Fadnavis has signalled that his government will not cede executive ground, even under legislative pressure.


Fadnavis’s intervention is less about one police officer than about restoring equilibrium and a measure of constitutional clarity. By insisting that the cabinet alone wields executive authority, he has drawn a line that others may be tempted to cross again. Whether it holds will depend not on constitutional text but on political restraint, an even rarer commodity.


For the moment, Maharashtra has been reminded that power, in a democracy, is not merely about who speaks the loudest in the chamber. It is about who is ultimately responsible for acting and being held to account. 


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