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Is 5 crores enough to retire in India?

Many people want to save enough money for their future so that they can retire and enjoy their life in a peaceful manner. They always worry about how much money would be enough so that they can survive the rest of their lives without having to work. In this regard, let us discuss some crucial issues you need to consider when you are planning to retire. While some people feel that having one crore is sufficient to retire, few others feel that they need more than 5 crores to be able to lead a comfortable life in future.

Factors to consider before planning your retirement

There are many factors you need to consider before thinking about retirement. Remember that it is not a simple decision to take in your life and you will be leaving a steady source of income in most cases when you retire from work. The job market is very competitive and it may not be very easy to get a suitable job in future when you stop working for few years. In this situation, if you are past the age of 50 and thinking in this direction, it makes some sense. However, if you are still in your 30s or 40s and looking forward to retire soon, you need to be aware of various factors that can affect your life in future.

Current earnings and savings

To begin with, you need to have good earnings and proper savings in order to think about retirement. If you already have more than few crores of savings, you can consider this option in the near future. Yet another factor you need to consider is your current earnings and see if your retirement income can match up to your current earnings. In this way, there will be no changes in your standard of living and you need not have to compromise on any aspect in future. When you have proper retirement planning, you will be able to lead a comfortable life without any financial problems.


Even though you have few crores of savings in your bank, you need to consider the inflation factor as it can reduce the value of your money in a drastic manner. Remember that money kept idle keeps losing its purchasing power and you will not be able to realize its complete potential if it is not invested in a proper way. Just imagine what all you could buy with 100 Rs when you were young and compare that with what you can buy with the same amount today. This will help you to realize the power of inflation and you need to understand that the same will happen to your savings in future. For this reason, your retirement planning should factor in the rate of inflation and ensure that your savings will be enough to handle your future expenses.

Standard of living

It is generally not possible to drastically reduce your standard of living just because you have retired from work. In this situation, you have to consider this factor when you are thinking about retirement planning. What will your current standard of living cost in the next 10 years when you consider the fact that prices of different commodities will continue to rise in future. If you have clarity on this question, you will get a clear idea about how much savings you need so that you can maintain the same standard of living for your entire life without making any compromise.

Health issues in future

When you are young and having good earnings, you will generally not have too many health issues. In this situation, your health expenses will also be very less and many people do not plan properly with regards to this issue. You need to understand that your health expenses are likely to increase in future as you get old and you need to be properly prepared to fact this issue. For this reason, your retirement planning should include appropriate health cover throughout your life and this should not give you any shock in future.

Insurance Cover

You should also have good insurance cover even when you have good savings. This can help your family members to lead a comfortable life financially even during your absence. Apart from that, investing in good insurance plans can also provide you benefits at a later stage to meet your future expenses. You can even consider buying few pension plans as part of your retirement planning and this can ensure a steady source of income for you in future.

Sources of Income

You should never depend on one source of income after your retirement and this can save you from many financial problems in future. Always plan your investment in such a manner that you will get income from different streams like pension income, rental income and other sources. In this way, even if one source has some problem, you can lead a comfortable life with the other income.

To finally answer the question of how much money is enough for you to retire, you need to consider all these factors and work on your retirement planning. If you are able to save nearly 5 Crores, you can easily consider retiring as this will be more than enough to lead a comfortable life provided you invest it carefully. Always consider insurance as the first priority and then choose a good health cover policy. Once this is done, you can focus on a good pension plan that will give you regular income on a monthly basis. When you have all these things covered, you can continue to work if you are passionate about your job or choose to retire and lead a relaxed life.


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