One of the major concerns that people find themselves struggling with is just how much savings they need to have in order to retire comfortably. It’s not a universal figure—it varies depending on individual circumstances. But one thing is becoming increasingly clear: retiring comfortably in a metro city in India could require a much larger financial cushion than most people currently anticipate.
The debate that began after a recent statement suggesting that Indians might need up to Rs 40 crore for retirement has become a widely discussed topic across various forums. It has already reached social media platforms and other spaces where investors gather to discuss financial planning. The entire argument began when Sandeep Jethwani, the founder of Dezerv, said that the current figures considered for retirement might not be enough for many people, given their relatively high lifestyles.
This debate has now expanded into a larger conversation due to its relevance in today’s world, particularly when considering factors like inflation, increased life expectancy, and rising living expenses in metropolitan cities of India.
The ₹40 Crore Question: Where It All Began
The discussion gained traction after Sonia Shenoy posed a relatable question during a podcast conversation: “I am almost 40, and I have an expense of Rs 2 lakh a month, give or take.” How much would I need to have in assets by the time I’m 60?”
Jethwani’s response was blunt and unexpected: “Rs 40 crore.”
He clarified that this figure does not include basic assets such as a home and a car, but it covers all other financial requirements, including a child’s education, medical care, and lifestyle costs for a moderately urban family.
The figure stood out not only for its size but also for its implications for the future of personal finance in India.
Why ₹40 Crore? Breaking Down the Math
Facing criticism, Jethwani reiterated his claim, giving a detailed explanation on social media platform X:
“If you are 40 today, spending 2 lakh rupees a month, with no EMIs to service, and you want to retire at 60, you will need 40 crore rupees.”
If the 40 crore retirement number I shared shocked you, this post is for you.
Here is what I said. If you are 40 today, spending 2 lakh rupees a month, with no EMIs to service, and you want to retire at 60, you will need 40 crore rupees.
The comments had a lot of pushback. The…
— Sandeep Jethwani (@sandeepjethwani) April 29, 2026
1. Inflation Facts People Fail to Notice
The first mistake that people often make is relying on headline inflation figures.
“Retail CPI in India is 5 to 6%. That is the inflation of atta, dal, and bus fare. It is not the inflation of an affluent household.”
Jethwani states that several other factors affect inflation for middle- and upper-class people living in cities:
- Healthcare costs: 12%–14% per year
- Wages for domestic help: 10%–12%
- Costs for premium education, travel, and lifestyle: 8%–10%
“Blend them and you get 9%. That is the real inflation rate of an HNI lifestyle.”
This is crucial because, in large cities such as Mumbai, Delhi, or Bengaluru, expenditures are becoming more service-orientated than essential, making standard inflation numbers less relevant.
2. Longevity Risk: Living Longer Than Expected
The second key assumption is life expectancy.
“Most Indians plan their retirement assuming they will live to 75 or 80. That is what national averages suggest. But national averages are pulled down by infant mortality and rural data.”
Jethwani highlights that affluent Indians often live significantly longer:
“For a couple aged 65 today, there is a 71% probability that one partner reaches 85. A 44% probability that one reaches 90.”
This implies that one must plan for at least 25 to 30 years rather than the commonly assumed 15 to 20 years.
3. The Basic Formula
The calculation behind the ₹40 crore figure is as follows:
- Monthly expenditure today: ₹2 lakh
- Future expenditure at age 60 (9%): ₹11.2 lakh/month
- Yearly expenditure: ₹1.34 crore
Assuming a retirement period of 30 years and returns equalling inflation, he said, “So corpus needed equals 30 multiplied by 1.34 crore. That is 40 crore.”
In other words, if your investments yield returns equal to the rate of inflation, your effective returns are zero, and you would need a much higher corpus to sustain withdrawals.
Is ₹40 Crore Really Achievable?
Jethwani offers a more optimistic perspective. He said, “Here is the good news. This number is not as far away as it looks. At 12% returns before retirement, 40 crore at age 60 translates to roughly 4 crore today for a 40 year old.”
Assuming a 12% annual return prior to retirement, compounding can make up a significant portion of the gap. Nevertheless, it requires disciplined investing and higher savings rates, which can be challenging for many Indians.
Social Media Criticism: Mind-Boggling or Misinformation?
The estimate did not escape criticism. Social media users had several objections. One user commented, “Why does this retirement number keep on increasing with every reel?”
The other user said, “Very poor analysis. Only School fees inflation is in higher double digit. You dont need this Inflation in your 60s. Remove this you will sit at 8 Cr and not 40 Cr.”
Critics also questioned the assumption that expenses remain constant, “Lifestyle remains the same post retirement… Where can you spend 2 Lakhs a month at current prices when you are 60?”
These arguments highlight a key divide in financial planning—aspirational vs realistic spending in retirement.
The Reality Check: Who Actually Needs ₹40 Crore?
And that depends largely on your lifestyle.
You will probably need more money if:
- You live in metropolitan cities
- You prefer private healthcare and premium facilities
- You travel frequently
- You employ domestic help
- You aim to retire financially independent, without compromises
You will probably need less money if you:
- Move to smaller cities after retirement
- Reduce discretionary expenses
- Have fewer financial dependents
- Depend on existing assets (such as property)
The Bigger Picture: Retirement Planning Must Change in India
Beyond the estimate, one key takeaway from this discussion is that India remains underprepared when it comes to structured retirement planning. Traditionally, retirees depend on:
- Provident Fund (PF)
- Fixed Deposits (FD)
- Family support
However, with rising urban costs and nuclear families becoming the norm, that model is rapidly becoming outdated.
Jethwani himself clarified, “The point of this message is not to scare you. It is to make sure you understand the silent erosion of purchasing power that inflation causes.”
Final Take: ₹40 Crore or Not, the Wake-Up Call Is Real
The ₹40 crore retirement requirement may not apply in every case, but it does highlight an important reality:
- Inflation is multi-layered
- People are living longer
- Lifestyle expectations are rising
Whether your retirement target is ₹5 crore, ₹10 crore, or even ₹40 crore, the key takeaway is to start early and plan realistically.
As the future can always bring surprises, it will almost certainly cost you more than you expect.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.)
