In today’s hustle culture, the idea of retiring by 45 isn't just a dream—it’s a movement.
The global FIRE (Financial Independence, Retire Early) trend is catching on in India too, where people aim to save aggressively, invest wisely, and make work optional.
But can a regular salaried Indian really retire at 45?
Yes—with the right financial strategy.
Step 1: Define Your Retirement Number
To retire early, you need to build a corpus that can generate enough income for the next 40+ years.
🎯 Formula:
Retirement Corpus = Annual Expenses × 25
If you plan to spend ₹6L/year post-retirement:
₹6,00,000 x 25 = ₹1.5 Crore (minimum corpus)
Add inflation buffer: In reality, aim for ₹2–3 Cr.
Step 2: Reverse Engineer Your Investment Plan
Let’s assume:
You’re 25 today
You want to retire by 45 (20 years to build wealth)
Target corpus: ₹2.5 Crore
Expected return: 12% p.a. (via SIP in equity mutual funds)
SIP Needed = ₹27,000/month
Start at ₹27,000/month now → retire with ₹2.5 Cr in 20 years
Start late? You’ll need ₹45K+/month from age 30.
Step 3: Build the FIRE Portfolio
| Asset Type | Allocation | Return (p.a.) | Purpose |
|---|---|---|---|
| Equity Mutual Funds (SIP) | 60–70% | 12–15% | Wealth Accumulation |
| Index Funds | 10% | 10–12% | Low-cost Equity Growth |
| PPF/EPF | 10–15% | 7–8% | Stability + Tax-free |
| Gold ETFs | 5% | 6–8% | Inflation Hedge |
| Debt Funds/Liquid | 5–10% | 6–7% | Emergency + Safety |
💡 As you approach 45, slowly shift from equities to debt funds to protect corpus.
Step 4: Cut Expenses, Boost Savings
Early retirement demands a high savings rate — ideally 40–50% of income.
Tips:
Track every rupee using budgeting apps
Cook at home, cut OTT bloat, use shared rides
Avoid lifestyle creep as income grows
Invest bonuses and windfalls fully
📱 Try Vizzve’s FIRE calculator to find your target number and monthly SIP.
Step 5: Create Passive Income for Retirement Years
Once retired at 45, how will you earn?
SWP (Systematic Withdrawal Plan) from mutual funds
Rental income from property
Dividend stocks
Freelance or part-time income (optional)
Annuity plans for steady payouts
FAQs
1. Is it really possible to retire by 45 in India?
Yes, with disciplined investing and a 20+ year horizon, many Indians are achieving this via the FIRE movement.
2. How much monthly income do I need post-retirement?
Depends on lifestyle. Most early retirees aim for ₹50K–₹1L/month, inflation-adjusted.
3. Can I rely only on SIPs?
SIPs are the backbone, but include some fixed income (PPF, debt funds) and emergency funds too.
4. What about health insurance after retirement?
Buy a long-term comprehensive health plan before 45—premiums rise with age.
Conclusion: Retire Early. Live More.
Retiring by 45 is less about escaping work and more about reclaiming your time. It requires:
Smart savings
Strategic investing
Relentless consistency
💭 Don’t wait till 60 to start living.
Start planning your freedom today with Vizzve.
Vizzve Can Help You:
Track your FIRE number
Automate monthly SIPs
Choose the best mutual funds
Calculate post-retirement income options
Protect your goals with term & health insurance
Your Road to Retirement Starts Now.
Even ₹5,000/month can be your first step to freedom.
Published on : 26th July
Published by : SMITA
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