Retirement planning is changing fast in India. It is no longer just about turning 60. Many people today aim for financial freedom in their 40s or 50s. But experts warn that early retirement dreams need solid, flexible plans.
“Today’s retirement is less about reaching a specific age and more about choosing the right time to step away,” says Avnish Gulati, CEO, Zuari Finserv Limited.
He adds, “Simply wanting to retire early isn’t enough. Costs are rising, and career paths have become flexible. So, one-size-fits-all plans don’t work any more.”
A shift in mindset
Despite living longer, many Indians still treat retirement as a fixed point.
Prashant Mishra, Founder & CEO of Agnam Advisors, says, “In India, retirement has long been seen as a closure point, financially and professionally. Even today, many still expect it to work the old way — pensions, family support, and no active planning beyond 60.”
Amit Suri, CFP and Founder of AUM Wealth, agrees.
“People see retirement as a finish line. But it’s really a phase that can stretch 20 to 30 years. We need to talk more about its duration, not just the age we stop working,” he said.
Suraj Kaeley, SME at Meru Life, believes the word ‘retirement’ itself needs rethinking. “Life expectancy is rising fast. Many want to retire by their mid-40s or 50s. That means planning for a second life stage that could last 50 years. Active income must stay part of the plan for as long as possible.”
Why property alone won’t cut it
One big myth is that owning property secures retirement. Mishra points out that property is illiquid and comes with costs like upkeep and taxes. Plus, prices may not always rise. “Relying only on a house can leave you vulnerable,” he warns.
Suri highlights poor rental yields. “Rent returns rarely cross 4-5% and come with hidden costs. Managing property in old age can also get stressful,” he says.
Kaeley adds that the days of massive capital gains from property may be over, thanks to changing interest rates and market trends.
How to plan smart?
Experts recommend a mix of assets instead of betting only on real estate.
Gulati says a robust plan should blend equity mutual funds for growth, debt funds for steady income, PPF and NPS for tax savings, and health insurance for rising medical costs.
Mishra suggests holding some gold ETFs as an inflation hedge, plus keeping liquid funds or FDs for emergencies. Suri likes the “bucket approach” — short-term needs in liquid assets, mid-term in debt, and long-term in equity.
Kaeley stresses realistic returns and risk control.
“Aim for returns at least double the inflation. Keep drawdowns under control during market shocks. But people must drop biases — real estate or gold alone can’t do everything.”
Planning never stops
Many Indians wrongly believe planning ends at 55. “It’s never too late,” says Suri. “Even if you start in your late 50s, you still have 20-30 years ahead. Some equity is essential to beat inflation.”
Kaeley says, “Post-55, planning becomes even more critical. FDs feel safe but often fail to beat inflation. Mutual funds, SWPs, hybrid funds — these tools help retirees generate steady income.”