Retirement Planning: Even ₹2 Crore May Not Be Enough for a Carefree Life, Experts Warn

Authored By: Shishir Chaurasia | Navbharat Times • 4 Dec 2025, 10:55 AM

New Delhi: Many individuals assume that having a retirement corpus of ₹2 crore will be sufficient to live a relaxed, worry-free life after retirement. However, with rising inflation, this assumption could be misleading. CA Abhishek Valia, founder of Zactor, explains why careful planning is essential for a comfortable post-retirement lifestyle.

The Reality of Rising Expenses
Valia shared the example of a friend who confidently believed that ₹2 crore would secure his life after 60. Starting with a modest monthly expenditure of ₹50,000—a typical middle-class lifestyle without luxury—Valia demonstrated how inflation could dramatically increase costs over time.

How ₹50,000 Today Can Become ₹2.87 Lakh in 30 Years
Assuming a standard annual inflation rate of 6%, the same ₹50,000 monthly expenses today would grow to approximately ₹2,87,175 per month in 30 years. Maintaining the same lifestyle would then require an annual expense of over ₹34 lakh. This calculation excludes foreign holidays, lifestyle upgrades, or unexpected medical emergencies, highlighting the gap between assumptions and reality.

Planning for Longevity
Valia emphasized an often-overlooked factor: the duration of retirement. Today, retirees commonly live 25–30 years beyond 60. Therefore, a retirement corpus must last far longer than many expect. Even a ₹2 crore corpus, which may seem substantial now, may not comfortably cover the first decade of retirement once inflation is accounted for.

Key Takeaway
Early and realistic retirement planning is crucial. Simply relying on a fixed corpus without accounting for long-term inflation and lifestyle costs may leave retirees financially strained. Experts advise reviewing expenditure patterns and inflation assumptions regularly to ensure a truly secure and stress-free retirement.

This analysis underscores the importance of strategic financial planning to maintain a middle-class lifestyle comfortably through decades of retirement.