Rs 1 Crore Retirement Goal? Inflation May Make It Insufficient In 10 Years

• Many Indians target Rs 1 crore for retirement, but inflation significantly erodes its value over time.
• At 5% annual inflation, Rs 1 crore's purchasing power shrinks to Rs 61.37 lakh in 10 years.
• To maintain today's Rs 1 crore purchasing power, one would need Rs 1.63 crore after a decade.
• Traditional fixed deposits offer low real returns (around 2%) after inflation, making them inadequate for long-term goals.
• Equity-oriented mutual funds (10-11% returns) can help beat inflation, growing Rs 1 crore to a real value of Rs 1.21 crore in 10 years.

Why It Matters: Retirement planning must account for inflation and aim for real returns to secure future purchasing power.