Early retirement in India is gaining traction, but achieving it requires precise financial planning. Experts suggest a retirement corpus of ₹3–6 crore depending on age, lifestyle, and inflation. Using the 3.5% withdrawal rule and realistic expense projections, individuals can estimate their needs and avoid running out of money prematurely.
Early Retirement in India: The Real Corpus You’ll Need to Quit the 9-to-5
The dream of early retirement—whether at 40, 45, or 50—is becoming increasingly popular among India’s urban professionals. But walking away from a paycheck decades before traditional retirement age demands serious financial foresight. A recent analysis by Moneycontrol and Welfin outlines how much corpus you’ll actually need to retire early and sustain your lifestyle.
Key Highlights from the Corpus Planning Guide:
What Is Early Retirement?
Typically refers to retiring before age 60, often between 40–50.
Requires funding 30–40 years of living expenses without active income.
Corpus Estimation Framework
Experts recommend using the 3.5% withdrawal rule (more conservative than the Western 4% rule).
For ₹1 lakh monthly expenses, you’d need a corpus of ₹3.5 crore to ₹6 crore depending on retirement age and inflation assumptions.
Age-Wise Corpus Benchmarks
Retire at 30: ₹6–7 crore
Retire at 40: ₹5–6 crore
Retire at 50: ₹3.5–4.5 crore
These figures assume post-tax returns of 7–8% and annual inflation of 6%.
Lifestyle and Location Impact
Urban retirees with travel, healthcare, and leisure goals will need more.
Rural or minimalist lifestyles may require less, but inflation and medical costs remain key risks.
Common Pitfalls to Avoid
Underestimating healthcare costs and inflation
Overreliance on EPF or family support
Not accounting for emergencies or market downturns
Planning Tools and Strategies
Use retirement calculators and consult financial planners.
Diversify across equity, debt, real estate, and annuity products.
Consider passive income sources like rental yield, SWPs, or dividend portfolios.
Start Early, Save Aggressively
Begin planning in your 20s or early 30s.
Aim for a 50–60% savings rate if targeting retirement before 45.
Early retirement is achievable—but only with disciplined saving, realistic projections, and a robust investment strategy.
Sources: Moneycontrol, Welfin