Can I Retire With Rs. One Crore Today?

Last Updated on

Suppose we have Rs. one Crore with us today, can we retire with it? In this sneak preview of the freefincal Robo advisory template* let us punch some numbers in it and check what good is Rs. 1 Crore.

  • The template is free and open-source and will be released soon. It is currently being beta-tested by members of FB group, Asan Ideas for Wealth.

One Crore is a psychological or emotional benchmark for wealth. Financially it is just one followed by seven zeros with its value constantly eroded by inflation. That said, it is still a good chunk of money as we shall see below.


Every projection will have assumptions and the following are made in the robo advisory template

Inflation before and after retirement: 8% (to a small extent, this can factor in lifestyle changes)

Life expectancy: 85 years (could be more, but on average, this is reasonable)

Return from equity: 10% (better to be cautious and this could be the case a couple of decades from now)

After retirement return from instrument providing income is 6% (post-tax)

Return from fixed income (used as investment) is 7% (post-tax).

The retirement corpus (when possible) will be invested in four buckets:

B1: income for first 15 years in retirement

B2: low -risk bucket with 20-50% equity depending on age of the retiree

B3:  Medium-risk bucket with 30-70% equity (again age dependent)

B4: High-risk 70% or 100% equity.

While B1 provides inflation protected income for the first 15 years in retirement, B2, B3, B4 grow for later use.

In this example, if one crore is less than the total corpus necessary to invest in the four buckets, a much simple suggestion will be provided.

We will assume emergencies will be handled from other sources. This is a weak assumption, but do play along.

There are some more details, but let me not bore you with them. On to the examples for all ages from 60 to 30.

A 60-year old with Rs. 1 crore

Monthly expenses: Rs. 60,000 + another Rs. 60,000 for annual expenses (say health insurance)

There is not enough money to provide inflation protected income for the first 15Y. Taking any form of investment risk is ill-advised. So the robo says: Buy an annuity and seek constant pension.

Monthly expenses: Rs. 40,000 + another Rs. 40,000 for annual expenses

Now, about 89L is necessary to generate inflation protected income for first 15Y in retirement. However, 52L is necessary to do the same for the remaining 11 years. Only, 10.8L is in hand.

This again amounts to an excessive risk. The person will have to buy an annuity sooner or later. This is a tricky case requiring a SEBI registered Human advisor. I am still trying to see if the advice here can be automated.

Monthly expenses: Rs. 30,000 + another Rs. 30,000 for annual expenses

Now, 66.9 L is needed for 15Y inflation-protected income. Another 39.4L for the rest of the person’s life. So 1.06 Crore in all against 1 Crore in hand. That is pretty good. The person can adopt a bucket strategy with zero or minimal equity exposure.

Now let us look at the case for younger people. Obviously, the result will change depending on expenses as shown above, but I cannot show all possibilities here.

A 55-year old with Rs. 1 crore

Monthly expenses: Rs. 30,000 + another Rs. 30,000 for annual expenses

Rs. 66L is necessary for the first 15Y and another Rs. 56L for the rest.  So the corpus is about 23L short. This is “cat on the wall” situation. Take risk and it may become too much risk. Taking no risk is also a risk!  If the person chooses not to buy an annuity, then careful portfolio management is essential.

A 50-year old with Rs. 1 crore

Monthly expenses: Rs. 30,000 + another Rs. 30,000 for annual expenses

Now, 1.35 Crores is necessary.  About 67 L for the first 15Y and 69 L for the remainder of the person’s life.

Again, it is on the fence.

A 45-year old with Rs. 1 crore

Monthly expenses: Rs. 20,000 + another Rs. 20,000 for annual expenses

At last, only 99L is required to be invested in the four buckets as shown below! The person can comfortably retire (as per current expenses!)

A 40-year old with Rs. 1 crore

Monthly expenses: Rs. 30,000 + another Rs. 30,000 for annual expenses (say health insurance).

An additional 66L is required. The person cannot retire.

A 35-year old with Rs. 1 crore

Monthly expenses: Rs. 20,000 + another Rs. 20,000 for annual expenses (say health insurance)

Now there is a shortfall of 18L. Too risky to retire that young. Many youngsters in early retirement forums believe that it is possible, but if they see a bit more of life, they will agree that it is simply too risky.  A single unexpected recurring expense can screw up the whole plan.

So the answer to “Can I Retire With Rs. One Crore Today?” depends on several factors. It is certainly not impossible as the above example show. As mentioned this is a sneak preview of the post-retirement suggestion provided by the robo template. It will also cough up pre-retirement suggestions.

A 40-Year-old with 1 Crore wanting to retire by 55

Monthly expenses: Rs. 40,000 + another Rs. 40,000 for annual expenses (say health insurance)

Over to you: What are your thoughts on the above results and assumptions.

Do share if you found this useful

About the Author M Pattabiraman author of freefincal.comM. Pattabiraman(PhD) is the author and owner of  He is an associate professor at the Indian Institute of Technology, Madras since Aug 2006. Pattu” as he is popularly known, has co-authored two print-books, You can be rich too with goal based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management.  He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. Pattu publishes unbiased, promotion-free research, analysis and holistic money management advice. Freefincal serves more than one million readers a year (2.5 million page views) with numbers based analysis on topical issues and has more than a 100 free calculators on different aspects of insurance and investment analysis. He conducts free money management sessions for corporates  and associations(see details below). Previous engagements include World Bank, RBI, BHEL, Asian Paints, TamilNadu Investors Association etc. Contact information: freefincal {at} Gmail {dot} com (sponsored posts or paid collaborations will not be entertained)
Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

Connect with us on social media

Content Policy

Freefincal has original unbiased, conflict-of-interest-free,  topical reports, reviews, commentary and analysis on all aspects of personal finance like mutual funds, stocks, insurance etc. All guest authors and contributors to the site also do not have any conflict of interest. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. No promotional content We do not accept sponsored posts and link exchange requests from content writers and agencies. This is our privacy policy Our website is non-profit in nature. The revenue from the advertisement will only be used for hosting charges, domain registration charges, specific plugins necessary for traffic growth and analytics services for search engine optimisation.

Do check out my books

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingMy first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.  It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You WantGamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantMy second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.


  1. Great tool preview. Awesome work put Pattu Sir.
    Please let us know by when it can be released. Can’t wait to use it.
    Thanks again for everything! God bless you

Leave a Reply

Your email address will not be published. Required fields are marked *