Rs 40 crore needed to retire in India? This Startup founder's claim leaves Internet stunned; netizens says, 'Unrealistic discussion'
How much is needed to retire in India and live peacefully? Read this story to know more.
Rs 40 crore needed to retire in India? This Startup founder's claim leaves Internet stunned; netizens says, 'Unrealistic discussion'(Photo Credit: Screen Grab from Instagram video/_soniashenoy)
Retirement planning is not merely achieving a certain age but rather preparing for a life without a regular income. During retirement, money is at the centre of a transformed life: having enough money will dictate how you will experience your daily living, how you can afford to care for yourself with medical needs, and if you will live life free from financial pressures. So, one question most individuals face while planning for their retirement is "How much money do I need?"
How much money is needed to retire in India?
The answer to this question is not the same for everyone; rather, it is dependent on various variables unique to each individual, such as their current standard of living, estimated inflation rate, future healthcare expenses, projected remaining lifespan after retirement, and whether or not they are supporting dependents. However, with the cost of living (especially in urban areas of India) at an all-time high, many financial advisers recommend building an adequate financial retirement portfolio so that you will have at least 20-30 years' worth of funds available after retirement.
Recently, Sandeep Jethwani, co-founder of wealth management firm Dezerv, spoke about retirement. According to him, an individual will need a corpus of 40 crores by the time he/she turn 60 years of age. He stated, "The numbers feel overwhelming but the fact is If you are in the age group of 35- 40 and have expenses of 1-2 lakhs per month living in a metro in India today, you will need a corpus of 40 crores by the time you turn 60 years of age."
Jethwani was on the Money Mindset podcast with journalist Sonia Shenoy discussing the fact that a retired aged 60 should ideally have a corpus of 40 crore, which allows for living costs of at least Rs 1-2 Lacs per month, adding that the Rs 40 crore amount is "ex of the house you live in, ex of the car that you drive".
When questioned about what types of expenses would be included in the corpus. He stated, 'everything'. Furthermore, he added, "The full corpus. Whatever the amount to cover your future expenses, Rs 40 crore in India for a mid-size family will be a reasonable amount."
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Shenoy commented on the fact that having 40 crore in retirement would be very hard for anyone who is just starting; she stated that even 1 crore to retire would be very hard. To which Jethwani responded, "It is very hard". The caption on the Instagram post reads, "We don't realise that life expectancy has risen and with inflation and cost of living , we have to plan for retirement. Sandeep Jethwani is the founder of Dezerv , a wealth tech platform that manages an AUM of 16000cr . Sandeep has spent almost 20 years managing money for the wealthiest Indians, across geographies and businesses."
How did the Internet react to this viral claim?
Till now, the video has received over 5.3k likes and over 433 comments. Several netizens have reacted to this viral Instagram post. A netizen wrote, "In a city like bangalore you would easily need 10cr in today's time. Now taking 7% as real inflation, you need double of that in 10 years. So basically 4 times in 20 years. So the rationale looks pretty correct to me."
"What is the necessity of this podcast..those having 40 cr and above will not be watching reels like this. Those with less than 2cr will feel miserable. I don't even know why this came to my algorithm," another wrote.
Another user wrote, "quick back of the napkin calcs. using 3% withdrawal rate, a corpus of 7.2 cr should suffice for a 24lpa withdrawal (this is inclusive of basic inflation and excluding taxes). you could add the home mortgage in the cashflow calculations, which would ideally conclude by the time you retire. the medical costs are going to go up during retirement but you won't be paying home mortgage, so that's that. the corpus requirement would adjust based on the location that you retire in."
'Unrealistic discussion," a fourth user commented.
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