Retire Early? 8 Money Checks You Must Pass First
Thinking of retiring early or on schedule? Before you stop working, you need to check if your savings, health cover, emergency fund, and investments can truly last 30-40 years without a salary coming in.
Retiring at 45 means funding 40 years — longer than your entire career so far.
Your retirement corpus must replace your income for decades
Key Takeaways
Calculate your retirement corpus using the 25x rule — multiply your expected annual expenses by 25 to get a minimum safe target.
Buy a comprehensive health insurance policy of at least ₹20-25 lakh NOW, before you retire, while you are still insurable at lower premiums.
Build an emergency fund equal to at least 6-12 months of post-retirement expenses in a liquid instrument like a savings account or liquid mutual fund.
Thinking of retiring early or on schedule? Before you stop working, you need to check if your savings, health cover, emergency fund, and investments can truly last 30-40 years without a salary coming in.
Here's what happened: Early retirement in India is rising among salaried professionals, but most underestimate how long their corpus must last — often 35-40 years.. Health insurance is the single biggest retirement risk — a single hospitalisation without cover can wipe out 2-5 years of living expenses.. Without a regular salary, inflation silently erodes your purchasing power — ₹50,000/month today needs ₹1.8 lakh/month in 25 years at 5% inflation..
What you should do: Calculate your retirement corpus using the 25x rule — multiply your expected annual expenses by 25 to get a minimum safe target.. Buy a comprehensive health insurance policy of at least ₹20-25 lakh NOW, before you retire, while you are still insurable at lower premiums.. Build an emergency fund equal to at least 6-12 months of post-retirement expenses in a liquid instrument like a savings account or liquid mutual fund..
Keep 2-3 years of expenses in FDs or debt funds as a 'retirement buffer' — so a stock market crash never forces you to sell equity at a loss.
Plan Your Retirement Now
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