Introduction: Are You On Track?
Amit is 35, earning ₹12 lakhs/year. He has ₹5 lakhs saved. His colleague Priya, same age and salary, has ₹15 lakhs saved. Who's on track?
The answer: Priya is AHEAD by ₹3 lakhs! By age 35, you should have saved at least 1-1.5× your annual salary. Amit (₹5L) is dangerously behind. Priya (₹15L) is slightly ahead of schedule.
Fast forward to age 60. If both continue their patterns, Amit will have ₹60 lakhs (barely enough!), while Priya will have ₹1.2 crores (comfortable retirement). The 10-lakh difference at age 35 became a 60-LAKH difference at retirement!
This guide shows you EXACTLY how much you should have saved by every age (30, 40, 50, 60), calculates retirement corpus needed by city tier, and provides catch-up strategies if you're behind.
The Golden Rule: Savings as Multiple of Salary
Quick Benchmark Formula
By Age 30: 1× annual salary saved
By Age 40: 3× annual salary saved
By Age 50: 6× annual salary saved
By Age 60: 8× annual salary saved
Real Example
Retirement Savings Benchmarks by Age (Detailed)
| Current Age | Benchmark (× Salary) | ₹8L Salary | ₹12L Salary | ₹20L Salary |
|---|---|---|---|---|
| 25 | 0.5× salary | ₹4 lakhs | ₹6 lakhs | ₹10 lakhs |
| 30 | 1× salary | ₹8 lakhs | ₹12 lakhs | ₹20 lakhs |
| 35 | 1.5× salary | ₹12 lakhs | ₹18 lakhs | ₹30 lakhs |
| 40 | 3× salary | ₹24 lakhs | ₹36 lakhs | ₹60 lakhs |
| 45 | 4× salary | ₹32 lakhs | ₹48 lakhs | ₹80 lakhs |
| 50 | 6× salary | ₹48 lakhs | ₹72 lakhs | ₹1.2 crores |
| 55 | 7× salary | ₹56 lakhs | ₹84 lakhs | ₹1.4 crores |
| 60 | 8× salary | ₹64 lakhs | ₹96 lakhs | ₹1.6 crores |
How Much Total Corpus Do You Need to Retire?
The 25× Rule (4% Withdrawal Rule)
Retirement Corpus = Monthly Expenses × 300
Why 300? Because 25 years × 12 months = 300
This ensures your money lasts 30+ years with 4% safe withdrawal rate.
Tier 1 Cities (Mumbai, Delhi, Bangalore, Pune)
| Monthly Expenses | Age 30 (FIRE) | Age 40 | Age 50 | Age 60 |
|---|---|---|---|---|
| ₹30,000 | ₹1.57 cr | ₹1.5 cr | ₹1.26 cr | ₹1.12 cr |
| ₹50,000 | ₹2.62 cr | ₹2.5 cr | ₹2.1 cr | ₹1.87 cr |
| ₹75,000 | ₹3.94 cr | ₹3.75 cr | ₹3.15 cr | ₹2.81 cr |
| ₹1,00,000 | ₹5.25 cr | ₹5.0 cr | ₹4.2 cr | ₹3.75 cr |
Tier 2 Cities (Jaipur, Lucknow, Kochi, Indore)
| Monthly Expenses | Age 30 (FIRE) | Age 40 | Age 50 | Age 60 |
|---|---|---|---|---|
| ₹30,000 | ₹1.1 cr | ₹1.05 cr | ₹88.2 L | ₹78.7 L |
| ₹50,000 | ₹1.84 cr | ₹1.75 cr | ₹1.47 cr | ₹1.31 cr |
| ₹75,000 | ₹2.76 cr | ₹2.62 cr | ₹2.21 cr | ₹1.97 cr |
| ₹1,00,000 | ₹3.67 cr | ₹3.5 cr | ₹2.94 cr | ₹2.62 cr |
Tier 3 Cities & Rural Areas
| Monthly Expenses | Age 30 (FIRE) | Age 40 | Age 50 | Age 60 |
|---|---|---|---|---|
| ₹30,000 | ₹78.7 L | ₹75 L | ₹63 L | ₹56.2 L |
| ₹50,000 | ₹1.31 cr | ₹1.25 cr | ₹1.05 cr | ₹93.7 L |
| ₹75,000 | ₹1.97 cr | ₹1.87 cr | ₹1.57 cr | ₹1.4 cr |
Real Examples: Tracking Progress by Age
Example 1: Sneha, Age 30, ₹8L Salary
Current savings: ₹6 lakhs
Target by 30: ₹8 lakhs (1× salary)
Status: ₹2 lakhs BEHIND schedule
• Increase savings rate from 15% to 25%
• Save extra ₹2,000/month via SIP
• Redirect bonus to retirement savings
• Within 18 months, she'll be back on track!
Example 2: Rajesh, Age 45, ₹15L Salary
Current savings: ₹75 lakhs
Target by 45: ₹60 lakhs (4× salary)
Status: ₹15 lakhs AHEAD! Excellent!
• Continue current savings rate (20%)
• Rebalance to 40% bonds (de-risk as approaching 50)
• On track to retire with ₹1.5+ crores by 60!
Example 3: Anita, Age 55, ₹20L Salary
Current savings: ₹1 crore
Target by 55: ₹1.4 crores (7× salary)
Status: ₹40 lakhs BEHIND!
• Delay retirement to 65 (10 extra years!)
• Increase savings from 15% to 35% (max out!)
• Convert to aggressive portfolio (60% equity)
• Part-time work post-60 (extra income)
• With these changes, can reach ₹2.2 crores by 65
Catch-Up Strategies If You're Behind
Strategy #1: Increase Savings Rate (Most Effective)
- Age 30-40: Increase from 15% to 25% → Catch up ₹10-15L
- Age 40-50: Increase from 20% to 30% → Catch up ₹20-30L
- Age 50-60: Increase from 20% to 40% → Catch up ₹40-50L
Strategy #2: Delay Retirement (Buy More Time)
- Extra savings: ₹20-50 lakhs (depending on salary)
- Portfolio keeps growing: +50-80% more
- Reduced withdrawal years: Corpus lasts longer
- Delayed pension: 40% higher monthly pension (NPS)
Strategy #3: Side Income (Accelerate Savings)
- Freelance/Consulting: Extra ₹60K-1.2L annually
- Rent out property/room: ₹60K-1.5L annually
- Part-time teaching/blogging: ₹30K-60K annually
- Over 10-15 years: ₹10-25 lakhs extra corpus!
Quick Benchmarks Summary:
- ✅ Age 30: 1× salary (₹8-12L typical)
- ✅ Age 40: 3× salary (₹24-36L typical)
- ✅ Age 50: 6× salary (₹48-72L typical)
- ✅ Age 60: 8× salary (₹64-96L typical)
- ✅ Final corpus needed: ₹1-5 crores (depends on lifestyle & city)
Your Action Plan (THIS MONTH):
- ✓ Calculate where you stand: Current savings ÷ Annual salary = Your multiple
- ✓ Compare to benchmark: Are you ahead or behind?
- ✓ Calculate gap: Target minus current = How much behind
- ✓ Create catch-up plan: Increase savings rate by 5-10%
- ✓ Setup auto-SIP: ₹5K-10K monthly minimum
- ✓ Review annually: Every birthday, check progress!
Real Numbers to Remember:
Tier 1 City, ₹50K/month expenses:
Retire at 60 = Need ₹1.87 crores
Retire at 50 = Need ₹2.1 crores
Retire at 40 (FIRE) = Need ₹2.5 crores
💰 Start Today. Track Annually. Retire Comfortably. Your Future Self Depends on Your Present Actions!