How much money do you need to retire?
A useful rule of thumb in India: your retirement corpus should cover 20–30 years of inflation-adjusted monthly expenses, while continuing to earn a safe return on the remaining balance. If you spend ₹50,000 a month today and inflation runs at ~6%, you'll likely need around ₹2,87,175 a month at age 60 — and a corpus of about ₹6,43,23,086 to fund it for 25 years.
How inflation impacts retirement
Inflation quietly halves purchasing power roughly every 12 years at 6%. That means a 30-year-old retiring at 60 will see prices roughly 5–6× today's levels. A retirement plan that doesn't model inflation will look comfortable on paper and bankrupt in practice.
How to build your retirement corpus
- Start a monthly SIP in equity / index funds as early as possible.
- Step it up 10% every year with your salary increment.
- Keep at least 60–70% in equity until ~10 years from retirement.
- Gradually shift to debt and balanced funds as retirement approaches.
- Build a separate health insurance + emergency buffer so the corpus isn't drained by surprises.
Common mistakes in retirement planning
- Planning in today's rupees and ignoring inflation entirely.
- Assuming employer EPF / NPS alone will be enough.
- Stopping or pausing SIPs during market downturns.
- Underestimating retirement years — many Indians now live well into their 80s.
- Holding too much equity right up to retirement and then facing a crash.
Pro tip: The most powerful lever isn't return rate — it's time. Adding 5 more years of investing usually beats chasing a 2% higher return.