'Can I even retire in India?': Financial analyst explains why even ₹10 crore may not be enough

A growing number of young professionals in India are chasing the dream of early retirement. But just when they think they’ve cracked the code, reality hits—hard.

On LinkedIn, financial analyst Hardik Joshi spells it out: “In the US, people retire at 35-40 with $1M (~₹8Cr). But in India? Even ₹10Cr+ may not be enough.”

Why does early retirement, so achievable elsewhere, seem almost impossible in India?

Joshi points to the growing influence of the FIRE movement—Financial Independence, Retire Early—which is taking off globally. But in India, the math just doesn’t seem to add up.

“Inflation is brutal,” he writes.

• A ₹100 grocery bill in 2010 now crosses ₹300.
• Medical costs have doubled in a decade.
• Everyday essentials—from rent to school fees to travel—climb faster than salary increments.

And unlike the West, India lacks a robust fallback system.
“The US has 401(k), social security, Medicare,” Joshi explains.
Here, pensions are rare, and savings schemes like EPF and NPS often fall short for a long retirement.

Adding to the strain is a deeply rooted cultural dynamic.
“In the West, retirement means saving for yourself. In India, it often means supporting parents, children, and sometimes extended family too.”

Even those who’ve saved enough can be blindsided.
“A medical emergency can drain lakhs in weeks,” he notes, highlighting how underinsurance leaves many vulnerable.

So how much is enough?

• ₹3 crore offers a basic lifestyle but is risky if inflation rises.
• ₹5 crore can last 15–20 years but isn’t stress-free.
• ₹10 crore provides comfort but still needs passive income.
• ₹20 crore, Joshi says, brings “true financial freedom. You never have to work again.”

To get there, he suggests investing aggressively in stocks, mutual funds, and REITs to aim for 12–15% CAGR. Multiple income streams—like rentals, dividends, and digital businesses—are key.

Keeping expenses low matters just as much, as lifestyle inflation can quietly erode savings. And at least ₹1 crore in health insurance is essential, given how unpredictable medical costs can be.

“At some point, people stop asking ‘When can I retire?’ and start wondering ‘Can I ever retire?’”