Summary of this article
Retirement goals have changed but readiness still not optimal
Start saving early and review risk appetite with long term cash flow needs
Retirement goals have changed, but less than half of India’s population is retirement ready, Alice Blue, an online trading platform, said in a presentation at the Outlook Money 40After40 Retirement Expo in Mumbai on February 21, 2026. The aim of retirement is now to attain a corpus to substitute income rather than being age-based, it said.
Alice Blue said that as traditional pensions become a rarity and lifespans increase, it becomes necessary to shift the mindset of creating a retirement fund. More individuals are also seeking to retire early and achieve financial freedom, and in order to do so, it is important to create a kitty which suits their cash flow needs, it said.
“The real question is not: “When do you retire?” It is “When can your assets replace your income?” That is financial independence. And that is the real target,” Alice Blue said.
The presentation said that currently while over 70 per cent of the country fears financial dependence in old age, less than half of the population is ready for retirement. Additionally, about 37 per cent of the individuals have built less than a quarter of their target corpus.
Early Retirement Increases Responsibility
Alice Blue noted that at a time when healthcare costs are rising, in order to retire early, one needs a stronger capital base. Inflation compounding and turns in market cycles are also key factors which need to be kept in mind to plan for an optimal retirement corpus.
For individuals planning to retire early, due to increase in lifespans, the funding requirement also increases. For example, if one was to retire at 60 years of age, and live till 90, there is 30 years that one needs to fund from the pension fund. But, if one retires at 50 years of age, the funding requirement now becomes necessary to sustain 40 years from the pension fund.
In such a scenario, individuals need to plan in a smart manner. The aim should be to create a corpus which is around 25-30 times the annual expenses. However, if one is planning to retire early, the corpus should also increase to match the inflation and lifestyle changes through that time.
Start Planning Early
Alice Blue noted that if one has the goal of retiring early, then they should also start creating a solid retirement corpus early. The longer one delays, the higher is the cost and investment requirement to attain a lump sum kitty to align with life goals, it said. To this end, planning early and starting to invest in a long-term fund also compounds the investment over time.
Strategic Principles in Creating Retirement Corpus
While building a retirement corpus is important, for individuals planning to retire early, it is also important to focus on the distribution according to the cash flow needs which lasts over a long period of time.
Along with this, it is also important to focus on the three strategic principles of investing, Alice Blue said. These are:
Automating Wealth Creation: Engaging in systematic investing without emotion. Investing in a consistent manner aids in the compounding effect.
Asset Allocation over Stock Piling: Diversification of assets across equity and debt will help in attaining growth while also maintaining stability. In addition to this, it is also necessary to review the risk appetite as retirement approaches.
Plan for Income, not just Returns: In creating a corpus, retirement planning should prioritise creating predictable cash flow, capital preservation and tax efficiency.
In order to effectively plan for an early retirement, individuals also need a sustainable passive income, controlled lifestyle expenses, and disciplined investing over a long term.
