New Delhi, Aug 18 : Urban Indians may require a retirement corpus of Rs 2.5 crore to Rs 6 crore to maintain a comfortable and dignified lifestyle for 25-30 years after retirement, according to a study by Jeevin Consulting.
The report, titled The Cost of Ageing in India, said conventional retirement planning generally provides for routine household expenses but often underestimates the long-term financial impact of healthcare, caregiving, assisted living and senior housing.
The study has proposed an “Ageing Cost Index” to estimate the actual cost of growing older across Indian cities by combining living and housing expenses with healthcare, caregiving and long-term support requirements.
According to the report, the retirement corpus required by an individual would depend on the city, lifestyle, housing arrangement, medical needs and the level of care required during old age.
The report identified healthcare inflation as one of the biggest risks to retirement savings. It estimated healthcare inflation in India at 10-14 per cent, nearly twice the rate of general inflation.People above the age of 60 may also spend two to four times more on healthcare than those of working age, it said.
The study said the cost of retirement housing should not be assessed merely on the basis of the price of purchasing a home or the monthly rent. Recurring expenditure on maintenance, food, housekeeping, security, healthcare, nursing and emergency assistance can significantly increase the overall cost of retirement.
In ownership-based senior living communities, recurring monthly expenses range from Rs 30,000 to Rs 60,000 in affordable projects and may rise to Rs 1-2 lakh or more in premium communities, depending on meal plans, nursing support and other services.
In rental-based senior living projects, monthly rentals range from Rs 20,000 to Rs 45,000 in the affordable category and from Rs 75,000 to over Rs 2 lakh in luxury retirement residences, the report said.
The study also highlighted substantial differences in the cost of independent retirement living across major Indian cities.Annual expenses were estimated at Rs 6-10 lakh in Delhi-NCR, Rs 6-9 lakh in Mumbai, Rs 5-8 lakh in Bengaluru, Rs 4.5-7 lakh in Hyderabad and Chennai, Rs 4-6.5 lakh in Pune and Rs 4-6 lakh in Kochi.An independent retirement lifestyle in Delhi-NCR could, therefore, cost up to 2.5 times more than in Kochi, largely because of higher housing, healthcare and caregiver expenses, it added.
Highlighting the report, Dr. Muralidhara C.P., Founder, Jeevin Consulting & Jeevin Senior Care said,
"At a time when everyone wants to know how much to save for retirement, there is minimal discussion around how much ageing will cost an individual. Through this paper, we are trying to provide a framework wherein families, financial planners, the insurance sector, developers and policymakers can come together to plan for an ageing population. As we move towards having more seniors, it's important to evolve financial planning from wealth creation to lifetime preparation for retirement. This will allow us to not only create greater financial confidence but also ensure people can make calculated choices around healthcare access and retirement living options, he added.
Ankur Gupta, JMD, Ashiana Housing, said that
“Senior living needs to be viewed not just as a housing option, but as a lifestyle that brings together safe and independent living, wellness, community, convenience and the support people may need as they age. Retirement is an opportunity to pursue the activities one enjoys and lead an active and purposeful life, but this lifestyle also comes with associated costs. From wellness and community facilities to convenience, maintenance and support services, these aspects form an important part of the overall cost of living after retirement. Therefore, financial preparedness needs to go hand in hand with planning for the kind of lifestyle one wants to lead in the years ahead. Well-designed senior living communities can bring many of these elements together in one environment, enabling residents to plan not only for their financial needs but also for a more independent, engaging and fulfilling retirement.”
Anantharam V. Varayur, Co-Founder, Manasum Senior Living, added that
"Southern India has witnessed a gradual but meaningful shift in the acceptance of organised senior living, driven by changing family structures, longer life expectancy and growing awareness of planned retirement. As the sector evolves, the conversation must move beyond housing to include the lifelong costs of care, wellbeing and assisted living. With healthcare inflation continuing to outpace general inflation, planning for retirement increasingly requires a deeper understanding of the long-term cost of care alongside housing. This report is significant because it quantifies those realities and reinforces the need for retirement communities that can deliver both financial predictability and quality of life over the long term."
Tanya Saboo, Co-founder, Amaya Vera Vita Senior Living shared that
“India’s longevity economy is witnessing unprecedented growth and has opened up exciting opportunities for residential real estate players looking to provide integrated senior living solutions encompassing housing, healthcare, hospitality and lifestyle. With an ageing population and rising life expectancy, retirement housing needs to be viewed as long-term social infrastructure rather than a ‘convenience’ real estate category. This report helps highlight the value of retirement housing as well as the need for informed decision-making based on demographic insights.”
The report said the growth of organised senior living and rental-based retirement communities could provide older people with more housing choices. However, families would need to assess the complete lifetime cost of these options instead of focusing only on the initial purchase price or monthly rent.
