Does having 5 crores make you feel rich?

Dear Patrons,


Does having ` 5 crores make you feel rich?


A young enthusiastic young woman thought to have an early retirement. She thought a corpus of ` 5 crores would be sufficient for a good retired life. For her, not much is expected by way of inheritance. She has a residential house in which they live in.

She understood that only she has to manage her own earning and investments.

Her salary of ` 50,000 either goes to monthly living, luxurious life style and EMIs. She has not saved a single paisa till now. She is 24 currently. Let us assume 7% inflation and what her expense will be later in life. (At 7% assumed inflation, Expense to double every 10 years)


Age Expense
24 ` 50,000
34 ` 1,00,000
44 ` 2,00,000
54 ` 4,00,000


She will be spending ` 4 Lac assuming she retires at age of 54…

…But story does not end here. Life expectancy in urban area has gone up. Now what will be the scenario with same inflation? (Mind well, she is not compromising at all with her lifestyle)


Age Expense
64 ` 8,00,000
74 ` 16,00,000
84 ` 32,00,000


` 32 Lac per month…. Yes, she will need ` 32 lacs per month in later years of her life.

That is how compounding of inflation shatters all plans.

So to dream to have ` 5 Crores as a retirement corpus is sufficient?  Let us examine, how much she actually need at age of 54 to feel rich?

Staggering ` 12 crores. That is what she should have. Much beyond her plan to have ` 5 crores.

Infants, toddlers, kids, teenagers, youth are phase of life. Consider Retirement is phase of life. Take steps calculatedly to take care of uncertain future.