You’ve spent your entire life chasing that magical ₹1 crore retirement goal. But what if, by the time you get there, it can’t even cover your monthly groceries?

That’s not fear-mongering, it’s a very real warning for India’s middle class.

Recently, Chennai-based audit expert B. Govinda Raju raised the alarm in a viral LinkedIn post, calling ₹1 crore a “financial trap” if it’s your only retirement plan. The biggest issue? Most people fail to account for inflation and increased life expectancy—and that’s exactly how they end up outliving their savings.

The Math Doesn’t Add Up

Let’s break it down. If you retire at 60 with ₹1 crore and live till 85, that gives you about ₹33,000 per month to spend. Sounds manageable? Now factor in inflation.

• In just 10 years, that ₹33,000 could feel like ₹17,500 in today’s terms.
• By age 85, it may be worth just ₹16,000 a month.
  
  

That’s barely enough for basic groceries, let alone rent, medical expenses, or emergencies.

Experts now estimate that by 2045, ₹1 crore will have the real-world value of just ₹23 lakh.

Most Indians Aren’t Ready: The numbers are even more concerning when you zoom out:

• Only 1 in 4 Indians actively plan for retirement.
• Of those who do, most build a fund that’s under ₹20 lakh.

With rising costs and longer lives, that gap between expectation and reality is only widening.

What Should You Aim For?

• At least ₹4 to ₹5 crore in savings
• In smaller towns, even a modest lifestyle may cost ₹2.5 crore or more

Common Mistakes to Avoid

• Ignoring healthcare costs
• Relying too heavily on property
• Starting too late
• Understanding inflation

The Fix? Start Today

• Start early. The sooner you invest, the more compounding works in your favor.
• Increase your SIPs as your income grows.
• Diversify wisely across equity, debt, and other instruments.
• Plan healthcare expenses separately from your core retirement corpus.

And if you feel like you’ve already missed the bus? Don’t worry- better late than never still holds true.