A Chartered Accountant has called out influencers promoting ₹100 crore retirement fund targets as a 'math scam' and 'psychological trap'. According to reports from Mint, CA Nitin Kaushik argues that these targets are mathematically impossible for the majority of Indians, even those earning in Tier 1 and 2 cities. To build ₹100 crore savings over 30 years, investors would need to invest ₹2.8 lakh annually in tools earning at least 12% returns. Kaushik notes that social media influencers are selling dreams that are mathematically impossible for 99% of their followers, while the top 1% in India holds 40% of total wealth.
Kaushik advocates for ₹2-3 crore as a strong, practical retirement corpus for the Indian middle class. As reported by Mint, he suggests building a corpus at 300x monthly expenses in 2026, which would require ₹3.5 crore for someone earning ₹1 lakh monthly to sustain a similar lifestyle at retirement. For retirement planning, he recommends a 3% withdrawal rate in India's high-inflation environment, compared to the 4% rule commonly followed in the US. He also advises planning for longevity through annuity plans, long-term insurance, and savings set aside in mutual funds, FDs, or other instruments for use once a certain age is reached.
According to the CA's analysis reported by Mint, many investors are disengaging with SIPs due to impossible goals resulting in frustration. Kaushik suggests using Systematic Withdrawal Plans (SWP) for retirement, where investors can withdraw ₹1 lakh per month from a ₹3 crore corpus while the remaining amount continues to compound at 12% returns. This approach allows the corpus to sustain rather than deplete over time. He emphasizes that managing spending, keeping expenses in control, and building corpus gradually will allow for more reasonable retirement goals of ₹3 crore.
As reported by Mint, Kaushik warns that impossible goals for ₹50 crore from investments are causing frustration among ordinary investors, leading to feelings of failure and complete disengagement from investing. He criticizes influencers who make more money from Financial Planning Workshops than from their own investments. The CA notes that a large chunk of the middle class spends 15-20 years paying off home loans, making their home both their biggest asset and biggest debt, making expectations of building a 9-figure equity portfolio simultaneously a fantasy designed to sell courses.
