Is Rs 1 crore good enough for your retirement?

financialexpress.com:

Retirement is a crucial phase of life that demands financial preparedness. Retirement planning, therefore, has gained significant traction as individuals seek financial independence and security during their post-career years.

A fundamental question, however, that often arises is: Whether Rs 1 crore is enough for retirement? That is because this is the figure that keeps coming in regular discourse. In fact, post the launch of the Kaun Banega Crorepati (KBC) reality quiz show years back, becoming a crorepati has become the common man’s dream in India.

So, while this figure may seem substantial for many, several critical aspects need consideration when targeting a retirement fund. Here is what must be kept in mind.

One of the key factors in determining the adequacy of a retirement fund is your expected lifestyle and expenses. Different individuals have diverse needs and aspirations for their retired life. Some may prefer a frugal lifestyle, while others may have higher expectations in terms of travel, leisure, healthcare, and other activities. Assessing your expenses post-retirement is crucial to estimate the funds required.

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Inflation impacts the purchasing power of money over time. While Rs 1 crore might seem substantial today, it’s important to factor in the effects of inflation, especially over several decades of retirement. As prices for goods and services rise, the value of your savings can diminish if not accounted for adequately in your retirement planning.

Healthcare costs escalate with time. India’s healthcare landscape is evolving, and medical expenses can be a significant burden during retirement. The increasing costs of