'₹1 crore will feel like ₹16K a month by 2045': Expert warns India’s middle class is unprepared
Only a quarter actively plan for retirement. Many opt for pensions under ₹5,000/month. The median pension corpus? Often less than ₹20 lakh.
- Jul 22, 2025,
- Updated Jul 22, 2025 8:03 AM IST
If you think ₹1 crore is enough to retire in India, think again. By 2045, that dream figure could leave you scrambling just to cover basics—especially in a world where healthcare costs are soaring, inflation is relentless, and people are living longer than ever.
Chennai-based audit expert B. Govinda Raju has sparked a crucial wake-up call on LinkedIn: ₹1 crore is no longer a retirement cushion—it’s a trap if you’re not planning beyond it. “We don’t plan for longevity or inflation,” Raju wrote. And that, he warns, is why many Indians could run out of money before they run out of life.
Break down the math: If you retire at 60 with ₹1 crore and live till 85, that gives you ₹33,000 per month for 25 years. But inflation doesn’t stand still. In 10 years, that ₹33K will feel like ₹17.5K. By the time you hit 85, it may barely stretch to ₹16K a month—less than what many spend today on groceries and maintenance alone.
Add in rising healthcare bills, family emergencies, rent, and basic living expenses—and you’re staring at a dangerously underfunded retirement. The ₹1 crore that once sounded like a golden number shrinks fast. In real terms, it’ll be worth about ₹23 lakh by 2045.
Worse, most Indians aren’t ready. Only a quarter actively plan for retirement. Many opt for pensions under ₹5,000/month. The median pension corpus? Often less than ₹20 lakh.
If you’re aiming for ₹1 lakh per month in today’s terms—realistic in major cities—you’ll need a retirement corpus of ₹4–5 crore. Even for a modest lifestyle in smaller towns, ₹2.5 crore is the minimum safety net.
The core reasons for this crisis are chilling: underestimating inflation, ignoring healthcare costs, low financial literacy, and overreliance on family or illiquid assets like property.
The solution? Start investing early. Increase SIPs every year. Diversify between equity and debt. Plan for healthcare as a separate cost. Build passive income streams.
Bottom line: ₹1 crore won’t buy you peace of mind in 2045. If you don’t upgrade your plan now, you may end up downgrading your entire retirement.
If you think ₹1 crore is enough to retire in India, think again. By 2045, that dream figure could leave you scrambling just to cover basics—especially in a world where healthcare costs are soaring, inflation is relentless, and people are living longer than ever.
Chennai-based audit expert B. Govinda Raju has sparked a crucial wake-up call on LinkedIn: ₹1 crore is no longer a retirement cushion—it’s a trap if you’re not planning beyond it. “We don’t plan for longevity or inflation,” Raju wrote. And that, he warns, is why many Indians could run out of money before they run out of life.
Break down the math: If you retire at 60 with ₹1 crore and live till 85, that gives you ₹33,000 per month for 25 years. But inflation doesn’t stand still. In 10 years, that ₹33K will feel like ₹17.5K. By the time you hit 85, it may barely stretch to ₹16K a month—less than what many spend today on groceries and maintenance alone.
Add in rising healthcare bills, family emergencies, rent, and basic living expenses—and you’re staring at a dangerously underfunded retirement. The ₹1 crore that once sounded like a golden number shrinks fast. In real terms, it’ll be worth about ₹23 lakh by 2045.
Worse, most Indians aren’t ready. Only a quarter actively plan for retirement. Many opt for pensions under ₹5,000/month. The median pension corpus? Often less than ₹20 lakh.
If you’re aiming for ₹1 lakh per month in today’s terms—realistic in major cities—you’ll need a retirement corpus of ₹4–5 crore. Even for a modest lifestyle in smaller towns, ₹2.5 crore is the minimum safety net.
The core reasons for this crisis are chilling: underestimating inflation, ignoring healthcare costs, low financial literacy, and overreliance on family or illiquid assets like property.
The solution? Start investing early. Increase SIPs every year. Diversify between equity and debt. Plan for healthcare as a separate cost. Build passive income streams.
Bottom line: ₹1 crore won’t buy you peace of mind in 2045. If you don’t upgrade your plan now, you may end up downgrading your entire retirement.