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Retirement guide

How to retire early (FIRE) in India

FIRE — Financial Independence, Retire Early — means building a corpus big enough that its returns cover your expenses forever. The idea travels; the numbers need adjusting for India’s higher inflation.

The corpus you need

The classic rule is 25× your annual expenses (a 4% withdrawal). Because Indian inflation runs higher, a safer target is 28–33× (a 3–3.5% withdrawal).

Monthly expensesAnnualFIRE corpus (30×)
₹40,000₹4.8 lakh≈ ₹1.4 crore
₹60,000₹7.2 lakh≈ ₹2.2 crore
₹1,00,000₹12 lakh≈ ₹3.6 crore

How to get there

FIRE is powered by a high savings rate — often 40–60% of income — invested in mostly-equity SIPs while you are earning. The higher your savings rate, the sooner the corpus covers your expenses. A step-up SIP that rises with your income accelerates it further.

Living off it

After retiring, keep 2–3 years of expenses in safe assets and run a Systematic Withdrawal Plan from the invested corpus. Keep withdrawals below your long-term returns and the corpus can last indefinitely.

Model your FIRE number

Find your corpus, then plan the income you can safely draw.

Retirement Calculator →SWP Calculator →

Frequently asked

What is the 4% rule and does it work in India?
It says you can withdraw 4% of your corpus in year one (so you need ~25× annual expenses). India’s higher inflation makes a more conservative 3–3.5% (≈ 28–33× expenses) safer, especially for a very long retirement.
What savings rate does FIRE need?
A lot — commonly 40–60% of income. The maths is simple: the more you invest and the less you spend, the sooner your corpus can cover your (now smaller) expenses.
How do I draw income after retiring?
Keep 2–3 years of expenses in safe assets and run a Systematic Withdrawal Plan (SWP) from the rest, which stays invested and keeps growing. Model it so withdrawals stay below your returns.

Illustrative figures; a 30× corpus assumes a ~3.3% real withdrawal. Estimates for planning, not financial advice.