Why 4% FIRE Rule Fails in India: Experts Suggest New Retirement Strategies

• The 4% 'FIRE' rule, originating in America, is ineffective in India due to significantly higher inflation (5-6% vs. 2-3% in US).
• Indian lifestyle, housing, and healthcare inflation can reach 6-9% annually, depleting retirement funds much faster than expected.
• An example shows a 3 crore fund (25 times annual expenses) lasting only 29 years in India, falling short of the intended 30+ years.
• Experts suggest two solutions: considering early retirement as semi-retirement with part-time work or flexible income sources.
• Alternatively, build a larger fund, targeting 35-40 times annual expenses instead of 25 times, for full financial independence in India.

Why It Matters: India's high inflation makes the 4% FIRE rule unsuitable; a larger fund or semi-retirement is key.