Early Retirement (FIRE) in India — A Practical Guide
Financial Independence, Retire Early (FIRE) means accumulating enough wealth to cover your expenses without working. In India, this is achievable with disciplined saving and investing.
Calculate Your FIRE Number
Annual expenses × 25 (based on 4% safe withdrawal rate). If you spend ₹6L/year, you need ₹1.5 Cr. If ₹12L/year, you need ₹3 Cr. Adjust for inflation — if retirement is 10 years away, multiply by 1.5-2x.
Savings Rate Is Key
At 20% savings rate: retire in ~37 years. At 50% savings rate: retire in ~17 years. At 70% savings rate: retire in ~8 years. The savings rate matters more than investment returns.
Investment Strategy for FIRE
Accumulation phase: 70-80% equity (index funds + mid-cap). Near FIRE: Shift to 60% equity, 40% debt. Post-FIRE: SWP from balanced advantage fund at 3.5-4% withdrawal rate.