Most NRIs and OCIs need roughly ₹1.5 crore for a lean life, ₹3 crore for a comfortable one, and ₹6 crore or more for a premium metro lifestyle, in today's money. The right number depends on how much you will spend each month, where you will live, and how well you plan for inflation and healthcare.
The quick formula
Start with your expected yearly spending in today's rupees and multiply it by 25. This is the common "25x rule", which assumes you withdraw about 4% of your corpus each year. Tata AIA's guide uses the same method: ₹12 lakh a year needs about ₹3 crore. Some Indian planners use a more cautious 3.5% to 4% withdrawal rate, which is what Finnovate suggests for India.
The table below applies both rates to three example lifestyles. The monthly spending figures are illustrative assumptions, not surveyed averages.
| Lifestyle | Monthly spend (today) | Yearly spend | Corpus at 4% (25x) | Corpus at 3.5% (about 28.6x) |
|---|---|---|---|---|
| Lean (smaller city) | ₹50,000 | ₹6 lakh | ₹1.5 crore | ₹1.71 crore |
| Comfortable (tier-1 city) | ₹1 lakh | ₹12 lakh | ₹3 crore | ₹3.43 crore |
| Premium (metro, frequent travel) | ₹2 lakh | ₹24 lakh | ₹6 crore | ₹6.86 crore |
These totals should be treated as a starting point, not a guarantee. Retiring before 60, or planning for 30-plus years, calls for the higher number.
Why inflation changes the answer
India's retail inflation was 5.54% in September 2026, up from 4.83% in August, with food inflation at 7.74%. The RBI expects 5.2% for FY27, against its 4% target.
Most retirement planners therefore use about 6% a year for long-term planning. At that rate, prices roughly double every 12 years. A household that needs ₹1 lakh a month today will need about ₹3.2 lakh a month after 20 years and about ₹5.7 lakh after 30 years.
This matters even if you move back now, because a retirement can last 30 years or more. Medical costs usually rise faster than general inflation, so it is safer to plan a little higher than the headline number.
Costs NRIs and OCIs often miss
- Healthcare. Comprehensive family health insurance can cost ₹1 to 2 lakh a year, and top-up covers are often needed. Buy cover 2 to 3 years before you return, because insurers may restrict or price cover higher at older ages.
- Housing. A 2BHK in a good part of Bangalore can rent for ₹40,000 to ₹60,000 a month, per the same source. If you own a home, budget for renovation, maintenance and property tax.
- City choice. Some NRIs settling in smaller towns find that ₹3 to 4 crore is enough, according to EastMojo.
- Travel abroad. Many returnees keep visiting children or family overseas. Add a yearly travel line.
- One-off costs. Shipping belongings, setting up a home, and helping children with education or a first home can each run to several lakh.
- Emergency fund. Keep at least six months of expenses in rupees, separate from your investments.
Money, tax and OCI points
Where your savings sit matters. Money in NRE and FCNR accounts can be sent abroad freely, and the interest is tax-free in India while you are a non-resident. Money in an NRO account can be repatriated only up to USD 1 million per financial year, after taxes are paid. NRO interest is taxed at 30% plus surcharge and cess at source.
Your tax status will change when you return. Once you spend enough time in India, you become a tax resident and your global income can become taxable here. Some returnees qualify for a few years as "resident but not ordinarily resident" (RNOR), which can limit tax on foreign income. Your NRE and FCNR accounts also need to be converted or redesignated. Speak to a chartered accountant before you book your flight, since the timing of your move can change the tax bill.
OCI holders are in a slightly different position. An OCI card lets a foreign citizen of Indian origin live in India long term, but it does not make you an Indian citizen. Agricultural land, plantation property and farmhouses remain off-limits, and some government savings schemes are limited to resident Indian citizens, so check eligibility before you count on them.
Count your foreign income. A pension, Social Security or rental income from abroad reduces the corpus you need. Subtract the yearly amount from your expected spending before multiplying by 25.
A simple way to plan
- Estimate your monthly spending in today's rupees, including healthcare, housing and travel.
- Multiply by 12, subtract any pension or foreign income you will keep, then multiply by 25 to 28.
- Add a buffer for one-off costs and a six-month emergency fund.
- Spend 2 to 3 months in your target city before committing, to test your numbers.
- Review your tax residency, account types and repatriation plan with a chartered accountant.
This article is general information, not financial or tax advice. Your own numbers will differ.
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