Inflation Eats Your 1 Crore: Why Retirement Planning Fails in 10 Years

• Many Indians underestimate inflation's impact on their savings, especially for retirement planning.
• A 1 crore rupee investment today will have its purchasing power reduced to approximately 61.37 lakh rupees in 10 years due to a 5% annual inflation rate.
• An item costing 1 crore rupees today could cost around 1.63 crore rupees after 10 years, as seen with Delhi-NCR property prices.
• Traditional investments like Fixed Deposits (7% return) barely beat inflation, leaving only 37.27 lakh effective value from 1 crore after 10 years.
• Mutual Funds (10-11% return) can help combat inflation, growing 1 crore to an effective 1.21 crore after 10 years, ensuring better retirement security.

Why It Matters: Understand inflation's impact and choose investments offering returns significantly higher than inflation.