Is Early Retirement Really Feasible?
- Early retirement may sound exciting, but the numbers and trade-offs are often underestimated.
- Here’s what you need to know before you make that leap, from corpus size and lifestyle cuts to the investment risks you’ll need to manage.
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Table of Contents
FIRE isn’t just a dream, but it takes serious math. Discover what it really takes to retire at 45 in India.
Early retirement has become a buzzword in millennial circles, inspired in part by the global FIRE (Financial Independence, Retire Early) movement. It promises the freedom to walk away from work stress in your 40s. But beneath the promise of autonomy lies a much tougher question: can your money really last 40+ years without active income?
Let’s break it down using some real numbers and scenarios relevant for Indian investors.
Life Expectancy: Planning for 45+ Years Without Income
Assuming you retire at 45, and you live till 90 (a likely scenario for urban Indians with improving healthcare), that means your corpus must support you for at least 45 years.
This long post-retirement window multiplies the effects of inflation, healthcare costs, and market volatility. It also means you need to prepare for more than just basic expenses, you’ll need buffers for:
- Inflation-adjusted living costs
- Health shocks
- Lifestyle needs
- Spouse longevity
Corpus Required: How Much is Enough?
Let’s assume you need Rs. 1.25 lakhs per month to maintain your lifestyle today. If you plan to retire in 10 years, and want to live off returns for the next 45 years, you’ll need to build a corpus of Rs. 4.37 Crores (assuming 12% post-retirement return).
The number may look reachable on paper, but in practice, it’s extremely aggressive.
Monthly Savings Required: Can You Realistically Do It?
To build Rs. 4.37 Cr in 10 years at 12% CAGR, you’d need to invest about Rs. 1.9 lakhs/month via SIPs.
For most high-earning millennials, that translates to saving over 60% of post-tax income. That means consciously forgoing many lifestyle benefits during your highest-earning years.
It’s not impossible. But it demands:
- Prioritizing retirement above everything else
- Delaying home buying, car upgrades, luxury holidays
- A very high savings discipline
The Risk You Can’t Ignore
Let’s say you reach your target corpus by 45. What next?
The biggest risk isn’t running out of money, it’s losing discipline or reacting emotionally to market turbulence.
Imagine this:
- A year of 0% or negative return early into retirement
- You increase risk exposure in panic, chasing returns
- That risk move backfires, and your portfolio drops another 20%
You may now need to go back to work, or downgrade your lifestyle significantly.
Early retirement gives you freedom, but it also removes your safety net.
So, Is Early Retirement Impossible?
Not at all. But it’s not a casual goal either.
If you truly want to retire early:
- Start planning and investing aggressively in your late 20s or early 30s
- Use realistic calculators and future value projections
- Create separate buffers for medical, travel, and lifestyle spending
- Don’t underestimate the psychological toll of having no income in your 40s and 50s
The dream is valid — but it must be built on numbers, not narratives.
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