"You Need Rs 40 Crore To Retire": Founder's Claim Sparks Online Debate

A Rs 40 crore retirement number has set social media buzzing after a podcast conversation between Sandeep Jethwani, co-founder of Dezerv, and business journalist Sonia Shenoy went viral.

The discussion took place on Shenoy's show "The Midset", where she used her own finances as a live example. "I'm almost 40. My monthly expense is around Rs 2 lakh. How much should I have by 60?" she asked. Follow Markets Live Blog

"Rs 40 crore," Jethwani replied. He clarified that this excludes the house and car, but includes everything else a mid-sized family living in a metro city may need. Lifestyle, inflation, healthcare, uncertainty -- all accounted for.

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Shenoy admitted she was expecting the number to be closer to Rs 10 crore. The internet too wasn't prepared for Rs 40 crore.

Here's The Math Behind The Big Number:-

At first glance, the number sounds outrageous. But the logic is built on a common retirement rule. A widely used thumb rule says you need 30-40 times your annual expenses as retirement corpus.

Let's break it down:-

• Monthly expense today: Rs 2 lakh
• Annual expense: Rs 24 lakh
• Using the 40X rule: Rs 24 lakh × 40 = Rs 9.6 crore

That's nowhere near Rs 40 crore, right? However, the missing piece is time. Inflation changes the picture completely -- you are not retiring today, you are retiring 20 years later.

• Assume 6% annual inflation.
• Rs 2 lakh monthly expense today becomes roughly Rs 6.4 lakh per month by the time you turn 60.
• That is about Rs 77 lakh per year.
• Now apply the same 40X rule again.
• Rs 77 lakh × 40 = Rs 31 crore

Add buffers for health emergencies, longer life expectancy, and market volatility. And you are suddenly staring at a number between Rs 35-40 crore. That's the math Jethwani was referring to.

Why This Number Shocked Most People

For many Indians:

• Rs 1 crore is a lifetime milestone
• Rs 5 crore feels wealthy
• Rs 10 crore feels like retirement security
• Rs 40 crore feels unrealistic.

The clip went viral as it exposed the gap between what people assume retirement needs and what long-term inflation can do to expenses.

Social media reactions to the clip were hilarious and brutal. Users did not hold back.

"Why does this retirement number keep increasing with every reel," said one social media user. Another one said, "Even top 1 per cent earners investing 50 per cent salary for 25 years won't reach Rs 40 crore."

Some said that the clip only triggers anxiety while others agreed that the thumb rule of "40X your annual expenses" is accurate.

Another person sarcastically wrote, "Only 40 crores?"

Retirement Corpus: What Experts Say

The math behind Rs 40 crore retirement corpus isn't incorrect, its relevance is limited. According to Sharad Chand, Business Head-Wealth Management, Alankit Limited, "This figure typically assumes current monthly expenses of Rs 1-2 lakh in metro cities, compounded over 25-30 years at 6-7 per cent inflation. It also factors in longer life expectancy (up to 85-90 years), rising healthcare costs, and lifestyle choices like travel and leisure. In that context, Rs 40 crore can emerge as a logical outcome. However, the issue is not accuracy-it's applicability. For a large majority of Indians, this number is far removed from ground realities. So while it makes for a strong headline, calling it a benchmark would be misleading."

He added, "Rs 40 crore is largely relevant to a niche, high-income urban segment-typically the top 5-10 per cent of earners in Tier-1 cities. For everyone else, especially households in Tier-2 or Tier-3 cities, retirement needs are significantly lower. A more realistic monthly requirement for many is Rs 50,000 to Rs 1 lakh, which translates to a retirement corpus of roughly Rs 3-10 crore, depending on age, inflation, and lifestyle. India's diversity makes a one-size-fits-all number impractical."