Part One: Realising your retirement journey

Imagine reaching your 60s, 70s, or even your 80s, and realizing—you’re only two-thirds through your journey. That’s not science fiction anymore. Thanks to breakthroughs in healthcare, a more connected world, and the willpower of generations like ours, Indians are living longer than ever. In 2025, experts predict many of us may see our 90th birthdays—or beyond.

More time with family, more adventures, and—let’s be honest—a lot more years to make our money last. That’s where “The 100 Year Life” comes in. I picked up this book after a friend’s recommendation, and it completely changed the way I look at retirement.

With this new lease of life comes a new set of questions: How do we make sure our money lasts as long as we do? How do we find meaning, security, and joy through decades of retirement?

These are questions the book “The 100 Year Life” by Lynda Gratton and Andrew Scott puts at the heart of the conversation. Inspired by their insights—and a gentle nudge from a friend—this blog isn’t a book review, but rather a practical, Indian perspective on financing a life that could well stretch a century.

The idea is to provide a perspective on key questions that all of us ask about Retirement:

• How long are you expected to live? In other words, how many years should you plan for post-retirement?
• What are the monthly expenses that you would need to lead a comfortable retired life?
• What returns should you budget from your investments?
• What are the common investment mistakes households make in retirement years?

According to the Pew Research Center, as of 2024, India is home to approximately 48,000 centenarians (individuals aged 100 or older), ranking fourth globally after Japan, China, and the United States. ​Projections suggest that by 2050, India’s centenarian population will rise to around 111,000. More and more people are hitting big birthdays as milestones due to several factors contributing to Increased Longevity.

Factors contributing to the growing number of centenarians in India:​

• Improved Healthcare: Advancements in medical technology and increased access to healthcare services have enhanced life expectancy.
• Healthier Lifestyles: The Adoption of balanced diets, regular physical activity, and better sleep patterns contributes to longevity.
• Rural Living: A significant proportion of centenarians reside in rural areas, which often offer cleaner environments and reduced stress levels.

Given the above data, it is better to prepare and plan for a longer life post-retirement. From an Indian perspective, I would recommend that you plan for a life expectancy of at least 90 years. If you are retiring at age 60, you need to ensure that your money lasts till age 90. Your money should outlast you, rather than you outlasting your money.

What is the likely monthly expenditure to maintain a comfortable lifestyle?

The authors suggest that 50% of your last drawn salary could be adequate for a comfortable lifestyle for high-net-worth households. Some of you may find this inadequate and hence may want to budget for more. You can use this number as a starting point for your retirement plan.

What should be the long-term return expectations from your Investment Corpus Post Retirement?

There are significant variations in returns on a year-to-year basis, but in the long run, the developed markets have averaged a real return (Real Return: Nominal Return less inflation) of 3% per annum. This translates to about 7% p.a. to 9% p.a. in the Indian context (assuming an inflation rate of 4% to 6% and an equally weighted portfolio of debt and equity assets).

India has witnessed high inflation rates in the past two decades. This has resulted in higher rates of return from the equity and debt markets. Over the past two to three decades, the equity markets (as represented by BSE Sensex) and debt markets have delivered returns of 15% p.a. and 9% p.a., respectively. As a result, a higher return has been ingrained into our expectations. It is unlikely that these returns would be sustained in the coming years. Hence, there is a need to tone down your expectations of future returns from your investment.

If you were to assume 7% p.a. as your investment returns on your overall portfolio and budget for some taxation, you can assume an investment return of 6% p.a. on a post-tax basis. This would mean that a corpus of Rs 1 crore would be required to generate an annual income of Rs 600,000 (approx. Rs 50,000 per month).

What are the common mistakes households make in investing during their retirement years?

Harvard Professor John Campbell, in his presidential address to the American Finance Association, identifies some common mistakes households tend to make in investing during their retirement years.

The first mistake most households make is being underinvested in equities. 20% of HNI households have zero allocation to equities. Second, even if they invested in equities, their portfolios are not adequately diversified, with significant holdings in stocks of their employers. Thirdly, if the portfolios are diversified, there is a home bias with little exposure to global markets. Fourthly, they tend to sell securities that are making money for them and hold on to their losses. Lastly, households have a status quo bias – in other words, households tend to hold on to their investments and do not revisit their portfolios, even if there is a significant change in their needs.

In conclusion, my recommendation from an Indian perspective would be:

a. Your Retirement Plan should cover expenses till Age 90.
b. Be adequately diversified. The ideal portfolio would have components that provide for guaranteed and stable returns, growth potential, and liquidity.
c. There is a need to have a meaningful allocation to equity during the retirement phase of life. It will be very difficult for households to build a regular income through investments in risk-free assets only. An equal allocation to equity and debt can be a good starting point for investment planning.
d. There is a need to tone down the investment return expectation to 7%–9 % p.a. on the overall portfolio (equal allocation to debt and equity). Please note that we are trying to budget an average return for a long period (20-30 years). Further, there would be variation in returns on a year-to-year basis.

I will conclude by quoting a couple of lines from the book that can add ease and peace to the second innings of your life.

“With foresight and planning, a long life is a gift and not a curse. Getting your finances right is essential to a 100-year life, but money is far from being the most important resource. Family, friendships, mental health, and happiness are all crucial components”. 

And finally, if you want to know if you are retirement ready, head over to my next article – ⁠Are you retirement ready!