With inflation, how much money is required to live during retirement in India? I’m a married software engineer. I have a house in my village, no social responsibility, and no child. I have already saved 10 lacs.

Ah, retirement in India! It’s like the gentle lull of a boat on the serene waters of Kerala’s backwaters. You want to drift smoothly without any sudden disruptions.

You’re starting with 10 lakhs, which is a commendable base. However, planning for retirement is not just about how much you’ve saved, but how much that money can buy you in the future. Enter the invisible hand that silently erodes the value of your savings: inflation. In India, while the average inflation rate has hovered around 4-6%, in practical terms and considering lifestyle changes, it’s wise to account for an inflation rate of 6-7%.

Let’s consider the following:

1. Expenses: Living in your village likely means lower monthly expenses compared to a metro city. Assuming your current monthly expenses are ₹25,000, accounting for a 7% inflation rate, after 20 years, you’d need approximately ₹97,000 per month for the same lifestyle.
2. Duration: The average life expectancy in India is increasing. Assuming you retire at 60 and live until 85, you’ve got 25 years of post-retirement life to plan for.
3. Unforeseen Expenses: While you’ve mentioned no social responsibilities and no child, there could be health or other unexpected expenses.

Now, let’s talk about investment. Benjamin Graham, once said, “The investor’s chief problem—and even his worst enemy—is likely to be himself.” It’s not just about saving; it’s about growing that money. If you park your savings in instruments yielding minimal interest, inflation will outpace your growth. Consider instruments that offer a balance of safety and growth, based on the LSG framework. Don’t be lured by the siren song of quick profits in risky ventures; always say no to leveraged investing. Remember, in the world of investing, more often than not, slow and steady does win the race.

To sum up, it’s essential to boost your savings, invest wisely, and review your investments periodically. While 10 lakhs is a good start, you’ll need to focus on consistent saving and smart investment choices to ensure you maintain your desired lifestyle in retirement. And because advice is always better when personalised, consider Jama Wealth’s advisory services for tailored strategies.