Key Takeaway
A ₹1 crore FIRE corpus today needs to be ₹3.2 crore in 20 years at 6% inflation to provide the same purchasing power. Always calculate FIRE targets in future rupees, not today's rupees.
Your Timeline
Expenses & Savings
Economic Assumptions
Needed at age 55 to support expenses until age 85.
Monthly investment required for the next 25 years.
Retirement Breakdowns
FIRE Lifetime Projection
Retirement Planning Logic
- The Threat of Inflation: A monthly expense of ₹50,000 today inflates to a massive ₹2,14,594 by age 55 at a 6% inflation rate.
- Post-Retirement Return: In retirement, your corpus must be invested conservatively (e.g., debt funds/FDs yielding 8%) to minimize risk.
- Capital Depletion Model: This calculation assumes you consume both interest and principal, leaving a balance of ₹0 at age 85. Adjust assumptions upward to leave an inheritance.
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Frequently Asked Questions
Why does inflation matter for early retirement?
If you retire at 40 and inflation is 6%, your ₹50,000 monthly expenses will become ₹1.6 Lakhs by age 60. A FIRE target that ignores inflation will leave you broke in your later years.
What is a safe withdrawal rate adjusted for inflation?
The classic 4% rule already accounts for inflation (you increase withdrawals by inflation each year). For India, some planners suggest 3-3.5% to account for higher inflation and longer retirement horizons in early retirement.
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