'₹1 crore not enough': CA warns middle class their retirement plan may already fall short

Nitin Kaushik, a chartered accountant known for his practical finance insights, says inflation, rising healthcare costs, and lifestyle creep are rapidly eroding the value of that once-lofty goal.

“₹1 crore in 20 years won’t even cover your basic necessities. Forget luxuries,” he wrote, pointing to inflation’s relentless impact on long-term savings. He added that medical emergencies alone could “destroy small corpuses,” underscoring the need for more robust financial planning.

Here’s the math: someone investing ₹10,000 a month in equity mutual funds at a 12% annual return could reach ₹1 crore in 20 years. But if inflation averages 6%, that corpus won’t go far. 

A family with current annual basic expenses of ₹6 lakh will see that grow to roughly ₹19 lakh in 20 years. That means ₹1 crore would only fund about five years of basic living expenses—far from the multi-decade retirement many envision.

Kaushik emphasized that a higher target—₹10 crore—is a more realistic benchmark. “Even ending up with ₹5–7 crore gives you financial freedom, peace of mind, and a decent lifestyle,” he said.

His advice for those planning retirement: start early, increase investment contributions in line with income growth, and diversify across equity, debt, and alternative assets to outpace inflation. “Retirement planning isn’t just numbers – it’s about lifestyle security,” Kaushik noted.