₹1.5 Crore Saved: Will It Pay ₹1L/Month in Retirement?

Many Indians assume ₹1.5 crore is enough to retire comfortably. But after inflation, taxes, and rising healthcare costs, that corpus may run dry faster than expected. Here's the real math.

Here's what happened: At a 7% annual return, ₹1.5 crore generates roughly ₹87,500/month — before taxes and inflation eat into it.. India's retail inflation averages 5-6% per year, meaning ₹1 lakh today will feel like ₹55,000 in purchasing power within 12 years.. Healthcare costs in India are rising at 14% annually — a single serious illness can wipe out 3-5 years of retirement savings..

What you should do: Calculate your retirement corpus using the 25x rule: multiply your expected monthly expenses by 300 to get a realistic target.. Invest in a mix of equity mutual funds and debt instruments — a 60:40 split helps your corpus grow faster than inflation through your 50s.. Buy a senior citizen health insurance policy before age 60 to avoid medical costs eroding your monthly withdrawal amount..

Pro tip: Instead of a lump sum FD, use a Systematic Withdrawal Plan (SWP) from a balanced mutual fund — you pay lower tax and your corpus keeps growing between withdrawals.