EPF + own house = retirement sorted? CA warns how your Rs 2 crore flat can leave you cash-poor

For decades, owning a home and building a provident fund has been seen as the ultimate sign of financial security in India. It is the formula many grow up believing will guarantee a comfortable retirement. But what if that widely accepted plan has a serious gap? A recent analysis by chartered accountant Nitin Kaushik is challenging that belief, arguing that relying only on a house and EPF may leave many financially vulnerable much earlier than expected in life.

Nitin Kaushik, a CA who frequently breaks down personal finance concepts on social media, recently highlighted how this traditional approach may not hold up when tested against real numbers, especially in a Tier 1 city.

CA's assessment

According to his assessment, a retirement that spans roughly 25 years, adjusted for a steady 6 per cent inflation, would require a corpus in the range of Rs 5 to Rs 8 crore to maintain a comfortable lifestyle. Against that benchmark, the typical EPF savings of most private-sector professionals, often between Rs 40 lakh and Rs 1 crore, falls significantly short and may only sustain the initial few years of retirement.


He also pointed to a common assumption around real estate acting as a reliable income source. A Rs 2 crore apartment in a metro city, he explained, usually generates a rental yield of around 2.5 to 3 per cent annually. That translates to a monthly income of roughly Rs 45,000 to Rs 50,000 in today’s terms. While that may appear sufficient at present, inflation steadily erodes its value, cutting purchasing power dramatically over time.

The concern, as he outlined, is that real estate remains an illiquid asset with relatively low returns, which can leave retirees in a position where they own valuable property but struggle with consistent cash flow. This becomes particularly critical during later years, when healthcare costs and day-to-day expenses tend to rise.

Cost of delayed investments

Kaushik also emphasised the cost of delaying investments. To build a retirement corpus of Rs 6 crore by the age of 60, assuming a 12 per cent return from an equity-heavy portfolio, the monthly investment required increases sharply with age. Starting at 35 may require around Rs 38,000 per month, but delaying until 40 pushes that to Rs 68,000, and waiting until 45 raises it to approximately Rs 1.25 lakh.

His broader point touches on a shift in mindset. Many still assume that rising property values or family support will fill any financial gaps later in life. However, changing economic conditions and evolving family structures make those assumptions far less certain today.

Through this breakdown, Nitin Kaushik underlined a simple but often overlooked idea: retirement planning is less about owning assets on paper and more about building sufficient liquidity to sustain independence over time.