What costs ₹10 lakh today will cost ~₹32 lakh in 20 years at 6% inflation. Most retirement plans get this wrong by underbudgeting nominal.
Each preset is a real-world Indian household expense pricing forward.
Inflation isn't constant. 4% in benign years, 8%+ in inflationary regimes. Plan for the upper bound.
| Inflation ↓ / Years → | 5Y | 10Y | 20Y | 25Y | 35Y |
|---|---|---|---|---|---|
| 4% | ₹12.17 L | ₹14.80 L | ₹21.91 L | ₹26.66 L | ₹39.46 L |
| 5% | ₹12.76 L | ₹16.29 L | ₹26.53 L | ₹33.86 L | ₹55.16 L |
| 6% | ₹13.38 L | ₹17.91 L | ₹32.07 L | ₹42.92 L | ₹76.86 L |
| 7% | ₹14.03 L | ₹19.67 L | ₹38.70 L | ₹54.27 L | ₹1.07 cr |
| 8% | ₹14.69 L | ₹21.59 L | ₹46.61 L | ₹68.48 L | ₹1.48 cr |
Future nominal = Today × (1 + inflation)years. Compound erosion — same math as compounding, reversed direction.
India CPI 5-year geometric mean ~5.8% (FY20-25). RBI target band 4±2%. Real-world consumer inflation often outpaces published CPI for urban professionals because the basket weights differ.
Category inflation is what kills retirement plans. Healthcare runs 12-15%, education 10%, premium real estate 8-10%, while RBI headline says 5%. Use category rate, not CPI, for category-specific goals.
Sources: MoSPI CPI inflation series, RBI inflation target framework circular, NSO Cost-Inflation-Index for the Direct Tax cost-base.
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