Experts advise against planning solely around a target corpus. A retirement plan should also factor in rising healthcare costs, a sustainable post-retirement income stream and housing needs, including organised senior living where relevant.
“There is no universal retirement corpus because it depends on an individual’s lifestyle, healthcare needs and retirement goals,” said Anantharam V Varyur, Co-Founder, Manasum Senior Living, an Indian real estate and care provider.
According to Adarsh Narahari, Founder and Managing Director, Primus Senior Living, a retirement community and senior care developer in India, an urban middle- or upper-middle-income family that already owns a home may require a retirement corpus of around ₹3-5 crore to maintain financial independence.
This should ideally cover living expenses, healthcare, travel, organised senior living, if required, and unforeseen medical costs.
Rishabh Periwal, Senior Vice President, Pioneer Urban Land and Infrastructure, a real estate development firm, estimates that a corpus of ₹5-10 crore could provide greater financial flexibility, particularly for retirees planning for organised senior living in major cities while factoring in higher healthcare costs.
These estimates are indicative.
The actual requirement varies based on retirement age, inflation, investment returns, family support, healthcare expenses and lifestyle.
Plan for regular income, not just a retirement corpus
Building a retirement corpus is only one part of the equation, experts said.
“The focus should shift from simply accumulating a retirement corpus to ensuring that it can generate sustainable income throughout retirement,” Varyur said.
Dhruv Badruka, Co-Founder, Vera Vita, a property development Limited Liability Partnership, said retirement planning should factor in four key elements: regular living expenses, healthcare and wellness costs, inflation and an emergency reserve.
With many people expected to spend 30 years or more in retirement, ensuring a steady source of income after retirement becomes as important as the size of the corpus itself.
Make existing assets work for you
Experts also recommend evaluating how existing assets can support retirement.
Varyur pointed to reverse mortgages, which allow eligible homeowners to unlock the value of their residential property while continuing to live in it. Though underutilised in India, such products can provide an additional source of monthly income without requiring retirees to sell their homes.
The idea, experts said, is to create multiple income streams instead of depending entirely on accumulated savings.
Include housing and long-term care in your calculations
Experts also recommend factoring housing and care requirements into retirement planning.
Badruka said organised senior living should be considered as part of long-term financial planning rather than as an unexpected expense. Besides housing, such communities typically provide access to healthcare, wellness facilities, safety, caregiving support and social engagement.
Varyur said organised senior living should be evaluated alongside pensions, health insurance and retirement investments instead of being viewed only as a real estate purchase.
Account for rising healthcare costs
Healthcare is likely to be one of the largest expenses in retirement.
Narahari said healthcare costs are rising at 12-14% annually, outpacing general inflation. He recommends planning for both longevity and “healthspan” by allocating adequately for healthcare and investing in preventive care to help reduce expensive medical interventions later in life.
Experts also recommend reviewing retirement plans periodically to account for changes in inflation, investment returns and life expectancy.
