Protect Your Retirement
Inflation After Retirement: Why ₹1 Crore Today Will Feel Like ₹20 Lakh After 25 Years
At 6% inflation, the same lifestyle that costs ₹1 crore today could need ₹4–5 crores in 25 years. Plan withdrawals, asset allocation, and growth so your corpus outpaces prices.
Your withdrawal plan must grow faster than prices.
How Inflation Shrinks Purchasing Power
We assume 6% annual inflation (close to India's long-term average). That means prices double roughly every 12 years. ₹1 crore kept idle in low-return assets will not match this pace.
Today
₹1,00,00,000
Real value of today's ₹1 Cr
After 15 years
₹41,72,651
Real value of today's ₹1 Cr
After 25 years
₹23,29,986
Real value of today's ₹1 Cr
Visualising ₹1 Crore Losing Power
Horizontal bars show how much of today's ₹1 crore remains in real terms each year. The corpus looks big in nominal rupees, but its purchasing power slides.
Bars are adjusted to show a minimum width for readability. Actual percentage is shown on the right.
Annual Purchasing Power of ₹1 Crore (6% Inflation)
Use this as a quick reference to size your retirement corpus or SWP amount. The table shows what today's ₹1 crore is worth, year by year, in today's rupees.
| Year | Real value of ₹1 Cr | % of today |
|---|---|---|
| Year 0 | ₹1,00,00,000 | 100.0% |
| Year 1 | ₹94,33,962 | 94.3% |
| Year 2 | ₹88,99,964 | 89.0% |
| Year 3 | ₹83,96,193 | 84.0% |
| Year 4 | ₹79,20,937 | 79.2% |
| Year 5 | ₹74,72,582 | 74.7% |
| Year 6 | ₹70,49,605 | 70.5% |
| Year 7 | ₹66,50,571 | 66.5% |
| Year 8 | ₹62,74,124 | 62.7% |
| Year 9 | ₹59,18,985 | 59.2% |
| Year 10 | ₹55,83,948 | 55.8% |
| Year 11 | ₹52,67,875 | 52.7% |
| Year 12 | ₹49,69,694 | 49.7% |
| Year 13 | ₹46,88,390 | 46.9% |
| Year 14 | ₹44,23,010 | 44.2% |
| Year 15 | ₹41,72,651 | 41.7% |
| Year 16 | ₹39,36,463 | 39.4% |
| Year 17 | ₹37,13,644 | 37.1% |
| Year 18 | ₹35,03,438 | 35.0% |
| Year 19 | ₹33,05,130 | 33.1% |
| Year 20 | ₹31,18,047 | 31.2% |
| Year 21 | ₹29,41,554 | 29.4% |
| Year 22 | ₹27,75,051 | 27.8% |
| Year 23 | ₹26,17,973 | 26.2% |
| Year 24 | ₹24,69,785 | 24.7% |
| Year 25 | ₹23,29,986 | 23.3% |
Numbers are illustrative and rounded. Inflation is assumed constant at 6% for simplicity.
How to Protect Your Post-Retirement Income
Blend Growth & Stability
Maintain a growth bucket (equity/hybrid) and a safety bucket (debt/liquid) to fund 3–5 years of withdrawals.
Use SWP, Not Ad-hoc Withdrawals
Systematic Withdrawal Plans give predictable cash flow while the rest stays invested for growth.
Annual Inflation Top-Up
Increase SWP by 5–7% yearly so your monthly income keeps pace with rising prices.
Review Asset Allocation
Rebalance yearly to keep risk in check; trim equity after rallies, add after deep corrections with discipline.
Tax-Efficient Choices
Prefer equity-oriented and index funds for long-term buckets; use debt only for near-term cash needs.
Goal-Led Cash Flow
Map monthly needs, medical buffer, and big-ticket spends separately. Align products and timelines accordingly.
Build an Inflation-Ready Retirement Plan
We help you size the right corpus, design SWP cash flows, and invest to beat inflation without taking reckless risk.
Disclaimer
Illustrations use constant 6% inflation for simplicity. Actual inflation, taxes, and fund returns will vary. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.
HRP Wealth is an AMFI Registered Mutual Fund Distributor (ARN-342284) and is not a SEBI-registered Investment Adviser. This is not personalized advice. Please assess your risk profile before investing or withdrawing.
HRP WEALTH | 9327141436 | hrpwealth@gmail.com | AMFI Registered Mutual Fund Distributor (ARN-342284) | Not a SEBI-registered Investment Adviser
