Retirement Planning
In 1947, an average Indian lived for just 31 years.
Today, our life expectancy is around 72 years – and steadily rising thanks to better medicine, nutrition and hygiene.
Good news: We are living longer.
Bad news: If you haven’t planned your retirement circus, this is a very expensive show.
Why retirement is now a 30–40 year event
At 60, most people are healthier, active, travelling, even starting second careers.
With rising longevity, you must plan till at least 90 — meaning 30–35 years of post-retirement life.
And then comes inflation.
Using 5% inflation and 10% return, your real return is only ~5%.
That’s the actual compounding power you’re working with.
Step 1: Estimate what you’ll spend
Retirees usually need 70–80% of current household expenses.
Let’s use 75%.
==> If your current monthly expense is ₹1,00,000, expect to need ₹75,000 per month in today’s terms when you retire.
Step 2: How big should your retirement corpus be?
Global “4% rule” doesn’t work well in India because inflation is higher.
For a 30–35 year retirement, studies suggest a safe withdrawal rate of 3–3.5%.
Thumb rule:
> Target corpus ≈ 30–33× your annual expenses (today’s value).
Step 3: A simple Indian example
Current age: 35
Retirement age: 60
Current monthly expense: ₹1,00,000
Retirement need (75%): ₹75,000/month
Annual need: ₹75,000 × 12 = ₹9,00,000
Required corpus (today’s value):
₹9,00,000 ÷ 0.035 ≈ ₹2.6 crore
Future value at age 60 (5% inflation for 25 years):
≈ ₹8.5–9 crore
To reach this by 60 at 10% returns, you need a SIP of ~₹65,000/month.
Who really needs retirement planning?
Those who keep saying “Abhi bohot time hai”
- Time is the biggest illusion.
- The cost of delay is brutal.
High earners with high lifestyles but low savings
- Inflation attacks lifestyle first, not income.
People who think their family will take care
- Today’s children will have their own financial battles.
Business owners who reinvest everything back
- Your business is not your retirement plan until it is liquid, stable and saleable.
Women who take career breaks
- Reduced earning years means planning must be even sharper.
Anyone relying only on PF or pension
- They help, but they are never enough for 30–35 years.
And of course… those who avoid the topic
- If thinking about retirement makes you uncomfortable, you are the one who needs it the most.
A friendly nudge
If you haven’t done these yet:
Define your target retirement age
Calculate your annual expense × 30–33
Translate it into a monthly SIP
…then the real risk is not living longer — the real risk is not planning for it.
Let your money live as long as you do.
Source: LinkedIn