Rs. 1 Crore Retirement Fund: What's its Real Value in 10 Years? Shocking Inflation Impact!

• Many Indians aim for Rs. 1 crore for retirement, but often overlook inflation's impact on its future purchasing power.
• Inflation, at an assumed 5% annually, significantly erodes money value; Rs. 1 crore today will have the purchasing power of only Rs. 61.37 lakh in 10 years.
• To maintain today's Rs. 1 crore purchasing power, approximately Rs. 1.63 crore will be needed after ten years due to inflation.
• Fixed Deposits (FDs) yielding 7% annually result in a real value of only Rs. 37 lakh (in today's purchasing power) for a Rs. 1 crore investment after 10 years.
• Equity-based mutual funds, with 10-11% average returns, can grow Rs. 1 crore to a real value of Rs. 1.21 crore in 10 years, effectively beating inflation.

Why It Matters: Retirement planning must prioritize future purchasing power and inflation-beating investments, not just nominal sums.