“Save ₹1 crore and you’re set for life.”
This advice worked 15–20 years ago. But in 2026 and beyond, ₹1 crore may not provide the financial security many assume — especially if you plan to retire comfortably.
Let’s break down why the ₹1 crore retirement goal is outdated.
Assume average inflation of 6% annually. Over 20–25 years, the purchasing power of money drops drastically.
₹1 crore today may feel substantial — but by the time a 30-year-old retires, its real value could be significantly lower. Everyday expenses like groceries, utilities, travel, and lifestyle costs will likely double or triple over decades.
Retirement planning must considerreal returns (returns after inflation)— not just nominal figures.
Medical inflation in India often exceeds general inflation. A single major hospitalization in retirement can cost several lakhs.
With increasing life expectancy, retirees may need funds for:
Chronic disease management
Surgeries
Long-term medication
Assisted care
Depending solely on savings without adequate insurance can quickly deplete a ₹1 crore corpus.
If you retire at 60, you may live until 85 or beyond. That means your retirement corpus must last at least 25 years.
Using a simple rule:If you withdraw ₹50,000 per month (₹6 lakh per year), ₹1 crore would last about 16–17 years — without considering inflation or returns.
That’s a gap most people underestimate.
Retirement today isn’t about minimal living. Many people want:
Travel
Dining out
Supporting children
Maintaining hobbies
Comfortable housing
Modern retirement is more active — and therefore more expensive.
A commonly used retirement planning guideline suggests withdrawing 3–4% annually to ensure sustainability.
If you need ₹10 lakh per year post-retirement:
Required corpus at 4% withdrawal rate = ₹2.5 crore
This alone shows why ₹1 crore may fall short.
The answer depends on:
Current monthly expenses
Expected retirement age
Inflation rate
Healthcare coverage
Desired lifestyle
Many financial planners today suggest aiming for20–25 times your annual expensesas a safer retirement target.
For structured long-term retirement savings, government-backed schemes like National Pension System and Public Provident Fund can help build disciplined wealth over time.
If your current monthly expense is ₹60,000:
Annual expense = ₹7.2 lakh
Adjusted for 6% inflation over 25 years → ~₹30 lakh annually
Required corpus (25× rule) → ₹7–8 crore approx.
That’s far from ₹1 crore.
Start investing early
Increase SIP contributions annually
Diversify (equity, debt, retirement schemes)
Review your retirement plan every 2–3 years
Avoid relying on arbitrary round figures
Retirement planning is personal — not psychological.
₹1 crore was once a powerful milestone. Today, it may only be a starting point.
The real question isn’t whether you’ll reach ₹1 crore — it’s whether your retirement corpus can sustain your lifestyle for 25–30 years without financial stress.
Plan realistically. Invest consistently. Adjust regularly.
