The Story Begins: Rajesh & Neha’s Early Retirement Dream
Rajesh and Neha were both in their mid-40s, living in Gurugram. He was a senior manager at a leading IT firm, and she was a marketing head for a multinational brand. Together, they earned close to ₹4.5 lakhs a month. Life was hectic—constant travel, long meetings, deadlines that didn’t end.
On a holiday in Kerala, sitting by the backwaters during Onam, they had what felt like an epiphany:
“Why are we slogging when we’ve already saved enough? Why not retire now and enjoy life?”
They calculated quickly: about ₹3 crores in mutual funds, ₹1.5 crores in equity, and two apartments (one in Gurugram, one rented in Jaipur). They convinced themselves it was enough. By the time Diwali arrived, they had both put in their resignations, filled with a mix of excitement and apprehension.
The first year was bliss—morning walks, family brunches, Navratri garbas, Diwali hosting, impromptu Goa trips. But as the second year rolled in, unexpected challenges began to appear, shaking their initial confidence.
7 Reasons They Rethought Early Retirement
1. Longevity Is Longer Than You Think
When I sat with them, I asked: “What if you live till 90?”
Retiring at 45 meant they had to fund 45 years without salaries. With their current lifestyle costing ₹2 lakhs/month, that’s ₹24 lakhs a year. At 6% inflation, that same lifestyle in 20 years would cost nearly ₹7.7 lakhs a month.
👉 To sustain, they would need a corpus of at least ₹12–15 crores, not the ₹4.5 crores they had.
Anecdote: During Karva Chauth, Neha joked with her cousins, “I can fast for a day, but not stretch our money for 45 years!” The humour carried truth—they hadn’t accounted for longevity. This cultural reference resonated with them, highlighting the importance of understanding cultural financial obligations in retirement planning.
2. Spending Habits Don’t Change Overnight
Rajesh imagined early Retirement would mean cutting costs. But within a year, their Diwali expenses—gifts for relatives, gold coins, festive clothes—still touched ₹4 lakhs.
Neha still wanted her spa memberships and branded clothing. Their old spending patterns followed them, even without the comfort of salaries.
👉 Lesson: It isn’t easy to “suddenly” become frugal.
3. Lifestyle Creep Never Leaves
They told me, “We thought we’d embrace simplicity.” Yet within 18 months, they upgraded their SUV, refurbished their Gurugram home before Diwali, and even booked premium seats for their son’s Australia trip. This gradual increase in their standard of living, known as ‘lifestyle creep’, led to a faster depletion of their retirement corpus.
Their “one-time” splurges soon became routine. Corpus depletion accelerated.
👉 Anecdote: Rajesh laughed that his uncle in Jaipur bought a simple car at 60, while he, at 46, was chasing a luxury SUV in “retirement.”
4. Purpose and Identity Collapse Without Structure
Rajesh was accustomed to leading teams and mentoring juniors. Without work, he felt adrift. Neha missed brainstorming sessions and even the adrenaline of quarterly reviews.
On Holi, surrounded by younger cousins narrating office gossip, they both realised—they missed belonging to that “professional tribe.”
👉 Retirement robbed them not of money first, but of identity.
5. Emotional Readiness Is Underrated
Financial planning aside, emotional readiness hit them harder. Who were they, if not “corporate achievers”?
Anecdote: At a family wedding, when introduced as “retired at 45,” they sensed admiration but also confusion. Rajesh later told me, “It felt good for 5 minutes, then strangely empty.”
6. Travel Dreams Turned Into Anxiety
They wanted to tick off their bucket list: Italy, the Maldives, and a Ladakh road trip. But each trip dented savings. A European tour for three costs nearly ₹12 lakhs.
Soon, Neha found herself converting rupees to euros at every meal. Travel stopped feeling liberating—it became stressful.
7. They Jumped Without Testing the Waters
Their biggest mistake? No “trial run.”
Had they tested a sabbatical—living only on investment income—they’d have spotted the gaps. Instead, they leapt, only to realize they couldn’t swim. This highlights the importance of a trial run, making the audience feel the necessity of testing their retirement plan.
Part 2: 7 Ways to Overcome Early Retirement Planning Challenges
1. Plan for 90, Not 60
Don’t plan to just “survive” Retirement. Plan to thrive till 90.
💡 Example: If monthly expenses today are ₹2 lakhs, you’ll need about ₹7.7 lakhs/month in 20 years (inflation @6%). That’s ₹92 lakhs a year. To sustain this, you need a retirement corpus upwards of ₹12 crores—not ₹3–4 crores.
2. Track Spending Ruthlessly
Rajesh & Neha finally began maintaining an Excel sheet of expenses. For the first time, they saw their “invisible spends”—Zomato orders, Amazon splurges, OTT subscriptions. These seemingly small expenses added up, and tracking them helped them identify areas where they could cut back.
💡 Tip: Track for 6 months. You’ll realise where 20–30% can be trimmed.
3. Budget for Lifestyle Creep
It’s human nature to want better. Accept it. Build it into your plan.
💡 Anecdote: A client couple told me, “We thought we’d stop buying gold at weddings post-retirement. But when Diwali came, how could we not?”
Lesson: Budget not just for needs, but for cultural obligations.
4. Build a Purpose Portfolio
Instead of “retiring from work,” retire to something. Rajesh now consults part-time, while Neha runs a weekend baking business. Both generate income and purpose.
5. Prepare Emotionally, Not Just Financially
A couple of conversations are key. Ask: “Who will we be without our designations?”
💡 Anecdote: One client started mentoring startups, another began teaching finance to college kids. Both said, “We didn’t miss work—we redirected it.”
6. Design Travel Smartly
Create a “Travel Fund.” Rajesh & Neha now set aside ₹10 lakhs/year for vacations. They can enjoy guilt-free trips without harming their bodies.
7. Do a Retirement Rehearsal
Take a sabbatical. Live on only investment returns for a year. See if you feel stretched or comfortable.
💡 Anecdote: Another client in Pune did this—he realised his family’s real monthly expense was 30% higher than estimated. That awareness saved him from a premature retirement decision.
Common Mistakes to Avoid in Early Retirement
1. Ignoring Inflation: Assuming today’s ₹2 lakh expenses will stay the same. Reality: In 20 years, it may be ₹7.7 lakhs/month.
2. Overestimating Corpus Returns: Believing equities will consistently deliver 12%. Markets are volatile.
3. Underestimating Medical Costs: At 65+, health expenses skyrocket. A knee replacement today at ₹4 lakhs could cost ₹12–15 lakhs in 20 years.
4. Not Including Cultural & Family Obligations: Weddings, Diwali, gifting—all drain savings if ignored.
5. Not Talking as a Couple: Many early retirements fail because one partner is ready, the other isn’t.
The Takeaway: Reinvention, Not Escape
Rajesh & Neha didn’t “fail” at early Retirement—they learned. Today, they work part-time, travel intentionally, and plan for 90. They’ve reframed Retirement as reinvention, not escape.
Their story is a lesson for every Indian couple:
• Don’t just plan for money—plan for identity, emotions, and culture.
• Don’t just escape work—design a purposeful second innings.
👉 Action Step for You:
Suppose you’re in your 40s, tempted by early Retirement, pause. Run your numbers, test your lifestyle, and plan with clarity.
🎯 Book your Financial Freedom Clarity Call with me today. Together, we’ll design your Richness Retirement Blueprint—so you can retire not just early, but wisely.
Disclaimer: The views expressed are for educational purposes only and do not constitute financial, investment, tax, or legal advice. Please consult qualified professionals before making decisions. Mutual fund investments are subject to market risks.
👉 Full Disclaimer | Disclosures | Terms of Use
| 👉Join my FAN page at: | facebook.com/CFPTareshBhatia |
| 👉Follow on Facebook: | facebook.com/TareshBhatiaCFPro |
| 👉Follow me on Instagram: | instagram.com/tareshbhatiacfp |
| 👉Follow me on Threads: | threads.net/@tareshbhatiacfp |
| 👉Follow me on Twitter: | twitter.com/tareshbhatiacfp |
| 👉Follow me on LinkedIn: | linkedin.com/in/tareshbhatiacfp |
| 👉Visit Website: | tareshbhatia.com |
| 👉Read Blog: | blog.tareshbhatia.com |
| 👉Buy my Book: | pages.razorpay.com/BookTRP |
| 👉Join me on Telegram: | t.me/+v0ewUJQU0wowN2Jl |
| 👉YouTube Channel: | youtube.com/@Taresh-Bhatia |
| 👉Subscribe: | tinyurl.com/SubscTB |
| 👉Join my Academy: | therichnessacademy.com |
| 👉Complimentary Session-Limited Offer: | learn.therichnessacademy.com/web/checkout/686f9d1203ac6c6374689439 |
| 👉WhatsApp message directly: | wa.me/919810127906 |
| 👉Get Ebook: | tinyurl.com/TenEbook |
The author of this article, Taresh Bhatia, is a Certified Financial Planner® and advocate for female empowerment. For more information and personalized financial guidance, please contact taresh@tareshbhatia.com
He has authored an Amazon best seller-“The Richness Principles”. He is the Coach and founder of The Richness Academy, an online coaching courses forum. This article serves educational purposes only and does not constitute financial advice. Consultation with a qualified financial professional is recommended before making any investment decisions. An educational purpose article only and not any advice whatsoever.
©️2025: All Rights Reserved. Taresh Bhatia. Certified Financial Planner®
Subscribe Now for Upcoming Blogs!
📢 Join free live webinar —
Couple Finance Formula™ Register here
