Question 1

What retirement corpus is needed for ₹1,50,000 monthly expenses?

Accepted Answer

Projecting your expenses to retirement at 50, your monthly expense of ₹1,50,000 grows significantly in purchasing power terms. At the India-safe 3% withdrawal rate (33× expenses), your FIRE number is ₹19.2 Crore. At the global 4% rule (25× expenses), it is ₹14.4 Crore.

Question 2

Should I use the 3% or 4% withdrawal rule in India?

Accepted Answer

The 4% rule was designed for US equity markets with lower structural inflation. India's inflation typically runs at 5-7%, making a 3% withdrawal rate much safer for long retirements. The difference is significant: your corpus target jumps from ₹14.4 Crore (4% rule) to ₹19.2 Crore (3% rule). If you're retiring before 50 with a 40+ year horizon, the 3% rule is strongly recommended.

Question 3

What monthly SIP is needed to retire at 50 with ₹1,50,000/month expenses?

Accepted Answer

To accumulate ₹19.2 Crore by age 50 at a 12% annual return, you need to invest approximately ₹1.9 Lakh per month starting today. Using a Step-Up SIP — where you increase your monthly contribution by 10% every year — you can achieve this with a lower initial investment.

Question 4

What happens if I want to retire at 45 instead of 50?

Accepted Answer

Retiring 5 years earlier at 45 instead of 50 has a compounding impact: your corpus target rises to ₹14.4 Crore, and you need to build it in less time, requiring approximately ₹2.8 Lakh monthly — compared to ₹1.9 Lakh for 50. Every year of delay in starting your FIRE journey costs disproportionately more.

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