Ignoring this simple money trick to build your retirement plan may cost your crore, warns CA

Retirement is often treated like a problem for “tomorrow,” but that delay can silently sabotage your financial future. Inflation steadily eats away at your savings, turning what feels like a comfortable nest egg today into pocket change decades later. Many dream of a relaxed lifestyle post-retirement, only to be frozen by the sheer scale of the numbers involved. The reality is that preparing early isn’t just smart—it’s essential.

CA Nitin Kaushik highlights that a basic lifestyle requiring Rs 1,00,000 a month today could balloon to over Rs 4,00,000 a month in 25 years due to 6% annual inflation. To maintain that lifestyle for 20 years after retirement, one doesn’t need a few lakhs—they need a corpus of around Rs 8–10 crore. The size of this figure can paralyse the average earner, making the goal feel unreachable and pushing them into procrastination.

Compounding math

Yet the math of compounding favours patience more than wealth. With 25 years until retirement, you don’t need Rs 10 crore today. At an assumed 12% annual return through a diversified equity SIP, roughly Rs 55,000 a month can set you on track. Delaying even five years doubles the challenge, pushing monthly contributions to over Rs 1,05,000 to hit the same target. Waiting to “earn more” can inadvertently make life much harder.



CA pointed out that in India, many prioritise “safe” returns yielding 5–6%. But with inflation at the same level, real returns hover near zero. Savings stagnate while expenses climb. To realistically aim for Rs 10 crore, embracing equity is no longer optional—it’s necessary. The challenge isn’t just money; it’s the patience to watch Rs 10,000 or Rs 20,000 leave your account each month for a future version of yourself. The small sacrifices of today—skipping a luxury car or a premium phone—pay off in dignity decades later.

Modest savings

CA Nitin Kaushik emphasises that even modest beginnings can compound into remarkable results. Starting with a Rs 10,000 SIP and increasing it by 10% every year through a Step-up SIP strategy can get surprisingly close to the multi-crore finish line. The goal isn’t sudden wealth—it’s ensuring your later years aren’t defined by financial struggle. Time, more than income, remains the most powerful ally. Ignoring the math now only leaves you scrambling when energy and options are at their lowest.