Question 1

What is FIRE and how is it different in India?

Accepted Answer

FIRE stands for Financial Independence, Retire Early. In India, FIRE requires a higher corpus than the US because of 6% structural inflation (vs 2-3% in the US), no universal government pension like Social Security, and a longer retirement horizon. We use a 3.3% safe withdrawal rate instead of the American 4% rule.

Question 2

How much money do I need to retire early in India?

Accepted Answer

At India's 3.3% safe withdrawal rate, your FIRE number is approximately 30x your annual expenses. If you spend ₹60,000 per month (₹7.2 lakh/year), you need roughly ₹2.18 crore. If you spend ₹1 lakh/month, you need approximately ₹3.64 crore. Use the planMyFIRE FIRE Number Calculator to get your exact figure.

Question 3

Why does planMyFIRE use 3.3% instead of the 4% safe withdrawal rate?

Accepted Answer

The 4% rule was derived from US market data where inflation has historically averaged 2–3%. India's long-term CPI inflation is around 6%, and Indian retirees have no government pension fallback. A 3.3% withdrawal rate is more conservative and appropriate — it means your corpus needs to be larger, but it is far less likely to run out over a 30-40 year retirement.

Question 4

Can I retire at 40 or 45 in India?

Accepted Answer

Yes — retiring at 40 or 45 is achievable for Indian IT and finance professionals with a high savings rate. A 40-50% savings rate invested in Nifty 50 index funds can build the required corpus in 15-20 years. The main challenges are health insurance (employer cover disappears on resignation), a longer retirement horizon requiring a larger corpus, and no Social Security safety net.

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