E-book: How to retire early in India

Retirement is an oft-discussed topic at freefincal with a fair share of exposure to early retirement. Here is a compilation of seven such posts in the form an e-book. This is the third such compilation.

The first was aimed at young earners, Starting Early, Starting Right and the second on DIY money management.

The third is on early retirement and fourth on post-retirement income generation strategies.

Retirement is typically when a person becomes a senior citizen or is just about to and stops being gainfully employed. Early retirement is when a person wants to quit a salaried job to either start a new enterprise where income is not guaranteed or wants to spend time doing things that they love, regardless of compensation

Early retirement is when a person wants to quit a salaried job to either start a new enterprise where income is not guaranteed or wants to spend time doing things that they love, regardless of compensation.

Early retirement is only independence from the shackles of a monthly salary and not the cessation of work or income from it. With enough corpus to fall back on for regular expenses, the ‘work’ can just about be anything, even nothing!

Therefore, the primary goal is to accumulate the ‘enough corpus’. How much is enough? What are the assumptions behind calculating the corpus? What are the dangers associated with early retirement? What can go wrong? How to track progress? These are some of the questions answered in the e-book.


Early retirement in India is quite different from what is discussed at popular US blogs like ERE and MMM. It is quite easy to calculate with a high real return (excess return above inflation) and arrive at a pleasing corpus. However, early retirement is fraught with many dangers. High inflation and an unlucky sequence of returns from equity can spell disaster. Therefore is it is extremely important to err on the side of caution. This compilation is an attempt to highlight such issues while also providing (links to) a list of tools to plan and track your early retirement.

Early retirement is not possible by everyone. The investible surplus (income-expenses – liabilities), along with copious amounts of luck is important to decide the health of a corpus.

At the same time, early retirement is not impossible. An onsite assignment is not necessary. Young earners who can invest with dedication for the next 10-20 years can hope to retire by age 50.

Download the “how to retire early in India” E-book.

Download a calculator to find out how much corpus is required to retire early

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4 thoughts on “E-book: How to retire early in India

  1. Thanks! I am going to keep this as a ready reckoner and something to share with with my friends 🙂

  2. I have definitely read these posts previously ,but as a compilation ,It has great value.
    let me re read them before i can comment.
    Thank you a lot for following important problem of every one’s life so passionately.
    Wish you all, all the best

  3. I have you previous ebooks and without a doubt, they are wonderful resources.

    I just have one point: I found several typos in those. I was not sure whether you’d like to be notified or whether you’d be upset at the nitpicking.

  4. I have been a long-time reader and admirer of your blog. Great information that you are providing.
    I do have one question- you are quite rightly focused on the high inflation in India (8-9% in your estimates) as a big risk to retirement (early or otherwise). But if you look at the long-term projections of inflation made by the World Bank or OECD etc. for India it is in the 4-5% range. That is in line with the current global trend of lower inflation due to improved productivity (i.e. due to technological improvements) and declining population growth (also true in the case of India- our population growth rate is down). Double digit inflation for short periods of time is certainly possible but do you think its possible for inflation in India to be 8-9% annualized over a 30-40 year period (the typical retirement time-frame)? What implications does that have for resource utilization and economic growth? Are there examples in history of countries having such hyper-inflation persist for decades? Also its interesting from an investment perspective- if inflation in the developed world is 2-3% (which it has been for quite some time now) and in India is 8-9% then investing a portion of our portfolio in foreign currency might be the way to go for the long term (either directly or through funds that invest in foreign stocks). One would think such a large differential in inflation will certainly lead to continued rupee depreciation over the long term- so if you are spending in rupees and have a portion of your wealth in dollars or pounds, that should be a hedge against inflation. Not sure if there are legal ways for Indians to invest in foreign currencies or stocks and what you think of this strategy as an inflation hedge?

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