How much money do you really need to retire comfortably in India? Most people probably won’t have a precise answer to this question as the number will vary widely depending on their lifestyle and future financial responsibilities. But when Sandeep Jethwani, co-founder of wealth management firm Dezerv, put out a specific figure in a recent interview, it caught everyone’s attention.
He pegged the number at Rs 40 crore for a comfortable post-retirement life.
The figure didn’t just raise eyebrows, it triggered a storm of criticism and heated debate online.
Some people called the number “mind-boggling”, “impossible” and accused Jethwani of fearmongering to drum up business for his wealth management firm.
One user said, “Welcome to the real world!! Expenses peak around 40 and goes down when we approach 60-70 (of course except health insurance) so these numbers are TOTALLY wrong. Look around you and count how many 60 yr old people are spending 2-3-4-5 lakh per month.”
Another pointed out what seemed like an obvious flaw: “One flaw in this assumption is simply projecting current expenses forward with inflation. Many of today’s costs are unlikely to persist or reduce in retirement—expenses related to children’s education, lifestyle upgrades, or frequent discretionary spending (clothes and all).”
The criticism painted a familiar picture: expenses naturally decline in retirement. No more school fees, no EMIs, less spending on clothes and fuel. Why would anyone need Rs 40 crore?
The mathematical defense by Jethwani
Facing the backlash, Jethwani took to social media with a detailed post breaking down his calculation and standing firmly by his number.
“If the 40 crore retirement number I shared shocked you, this post is for you,” he began.
He clarified the exact scenario: “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.”
Then came the crucial part, the assumptions that most people get wrong.
“Start with inflation. 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 explained.
Here’s where his argument gets compelling. The inflation that matters for high-net-worth individuals isn’t the one tracked by government statistics.
“Private healthcare in India runs at 12 to 14% every year. Domestic staff wages in metros are growing at 10 to 12%. Premium school fees, international travel, club memberships. All of these inflate between 8 and 10%. Blend them and you get 9%. That is the real inflation rate of an HNI lifestyle.”
It’s a point that resonates once you think about it. The cost of hiring household help in Delhi or Mumbai has skyrocketed. A decent health insurance premium doubles every few years. International vacations that cost Rs 2 lakh five years ago now demand Rs 4 lakh.
The second pillar of his calculation addresses longevity, and again, he argues most people are using outdated assumptions.
“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. They have nothing to do with how long a healthy, affluent Indian actually lives.”
His data is striking: “For a couple aged 65 today, there is a 71% probability that one partner reaches 85. A 44% probability that one reaches 90.”
In other words, planning for 15-20 years of retirement might leave you financially vulnerable for a decade or more.
Breaking down the Rs 40 crore corpus
Now the mathematics becomes clear.
“Rs 2 lakh a month at 9% inflation becomes Rs 11.20 lakh a month at age 60. That is an annual spend of 1.34 crore.”
If you plan for 30 years of retirement with a conservative portfolio (60% fixed income, 40% equity) earning 9% returns while inflation also runs at 9%, your real return is effectively zero.
“So corpus needed equals 30 multiplied by 1.34 crore. That is 40 crore.”
But here’s where Jethwani offered a sliver of optimism: “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.”
The Rs 40 crore corpus debate rages on
Even after his detailed clarification, the skeptics weren’t fully convinced.
“Incorrect Assumption: Lifestyle remains the same post retirement. There are no school fees to pay, much less spend on clothes, fuel and eating out post 60. Where can you spend 2 Lakhs a month at current prices when you are 60? This post is a desperate attempt to grab eyeballs,” one user fired back.
Another echoed the sentiment: “Why do you assume you will be spending that much when you are say at 60-70 years old, assuming you don’t have as many
commitments as you did at 40-60?”
The figure is definitely debatable but need for retirement planning is real
Perhaps both sides have valid points. Jethwani’s calculation is mathematically sound for someone maintaining a specific lifestyle — one with domestic staff, regular international travel, premium healthcare and metropolitan living standards. His inflation assumptions for that lifestyle bracket are defensible.
But critics are equally right that many expenses do drop post-retirement. Children become independent, career-related costs vanish and discretionary spending often naturally declines.
The truth likely lies somewhere in the middle, tailored to individual circumstances. What Jethwani has done, intentionally or not, is force a conversation India desperately needs to have.
“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,” he concluded.
In a country where retirement planning is still often limited to provident funds and fixed deposits, where children are expected to become the retirement plan, that’s a conversation worth having even if the numbers make us uncomfortable.
Whether it’s Rs 40 crore, Rs 10 crore, or Rs 5 crore, the underlying message remains: Indians, especially those in metro cities expecting to maintain comfortable lifestyles, may need to think far bigger about their retirement corpus than they currently do. The math might be debatable, but the wake-up call is real.
Disclaimer:
This article is for informational purposes only and is based on publicly available statements and social media discussions. The views and calculations mentioned are those of the individual quoted and may not apply universally. Retirement corpus requirements vary significantly depending on income, lifestyle, inflation assumptions and financial goals. Readers are advised to consult a qualified financial planner or advisor before making any investment or retirement-related decisions.