Retiring In India? Here's Why You May Need More Than Rs 3.5 Crore to Live Comfortably

Indians will need to save an estimated Rs 3.5 crore (around USD 401,000) to enjoy a financially secure and comfortable retirement, according to HSBC’s newly released "Affluent Investors Snapshot 2025" report.

This figure highlights the growing financial pressure on individuals due to rising inflation, higher life expectancy, and aspirational post-retirement lifestyles.
“Rising living costs and increasing longevity are pushing Indian investors to rethink their long-term financial plans,” HSBC noted in its report.

Shift in Priorities: From Short-Term Desires to Long-Term Security
While many Indians still focus on short-term goals such as buying property, funding education, or travelling, the report notes a shift: an increasing number are now prioritising long-term financial stability.

Managed investments, equities, and gold emerged as the most popular financial instruments in Indian portfolios, with investors also showing growing interest in alternative assets.

Family and Well-Being Take Center Stage
Interestingly, Indian investors also prioritise financially supporting their families, property investments, and maintaining personal well-being—suggesting that emotional and social factors play a significant role in financial planning.

The report reveals that cash allocation among Indian investors has dropped to 15% over the past year, reflecting a broader diversification of portfolios. However, there's no clear plan or consensus for future cash holdings.


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Early Planning Pays Off: Younger Investors More Confident
One of the clearest takeaways is the importance of starting early. HSBC found that those who began retirement planning in their early 30s were far more confident about achieving their retirement goals than those who started later.

“Late starters often fear they may have to compromise their post-retirement lifestyle,” the report observed.

Global Snapshot: India Still Lags Behind Peers
India’s retirement savings requirement of USD 401,000 is considerably lower than global averages. For instance:
Singapore: USD 1.39 million
Hong Kong: USD 1.1 million
United States: USD 1.57 million
China: USD 1.09 million

These figures underscore not only regional cost differences but also varied levels of financial preparedness.

The HSBC report acts as a wake-up call for Indian investors. With Rs 3.5 crore being the new benchmark, retirement planning can no longer be postponed. Starting early, diversifying investments, and prioritising future security could be key to a stress-free retirement.