Retiring at 50 is a dream for many — but it requires careful planning, disciplined saving, and realistic return expectations. The key question is: how much do you actually need? The answer depends on your lifestyle, expected inflation, and how long you plan to live.
The 25x rule
A common rule of thumb is the 25x rule: you need 25 times your annual expenses to retire comfortably. This assumes a 4% withdrawal rate per year, which is considered sustainable for a 30‑year retirement.
For example, if your annual expenses are ₹10,00,000, you would need ₹2.5 crore to retire. This is a starting point — not a final number.
Inflation matters
Inflation erodes purchasing power over time. At 6% inflation, ₹10 lakh today will be worth just ₹5.8 lakh in 10 years. Your retirement corpus must grow faster than inflation to maintain your lifestyle.
Steps to calculate your retirement corpus
- Estimate your annual expenses: Include housing, food, healthcare, travel, and leisure.
- Factor in inflation: Project your expenses 15‑20 years into the future.
- Choose a withdrawal rate: 4% is safe; 3% is more conservative.
- Account for medical emergencies: Keep a separate buffer of 10‑20%.
- Use a retirement calculator: Run different scenarios to stress‑test your plan.
How RION can help
We build personalised retirement plans that factor in your unique goals, risk tolerance, and lifestyle preferences. We'll help you set a realistic target and create a step‑by‑step investment strategy to get you there.