Inflation calculator: How much will 1 crore rupees be worth in 10, 20, 30 years? – Financial News

Today, retiring with Rs 1 crore of wealth may seem substantial as it can easily meet various retirement goals such as buying a house, funding a child's education or meeting the expenses of a child's wedding.

However, have you ever thought about whether that amount will be enough when you retire in 10, 20 or 30 years? The fact is that inflation erodes the value of money over time, and what seems like a significant amount today may not be enough to meet your post-retirement needs in the future.

In this article, we examine how inflation gradually reduces the purchasing power of your savings and highlight the importance of long-term financial planning.

How does inflation undermine the value of money?

1 crore rupees in your bank account may seem like a lot today, but it may not be enough to meet your future financial needs. This is because the value of money decreases over time due to inflation. For example, if a car costs 1 million rupees today, it will probably cost a lot more in 15 years. To understand this better, think about how much you spent on groceries or rent 10 or 15 years ago compared to today. The difference shows how inflation erodes the value of money. Even though 1 crore rupees may seem like a lot now, it may not be enough in the future.

Also read: NPS: Are you 40? This is how much you need to invest now to secure a pension of Rs 100,000 after retirement?

What will be the value of Rs 1 crore after 10, 20 or 30 years?

Assuming an inflation rate of 6%, the value of Rs 1 crore would fall to Rs 55.84 lakh. This shows the impact of inflation on long-term savings and investments.

In future, the value of 1 crore rupees will fall to about 31.18 lakh rupees, taking into account inflation of 6%.

After 30 years, Rs. 1 crore would be worth about Rs. 17.41 lakh today.

In conclusion, the rupee's medium to long-term decline in value underscores the importance of careful retirement planning. We often plan our finances based on today's purchasing power, but this will steadily decline over time. Moreover, if an investment product offers a 6% return, you are actually gaining nothing because 6% inflation will effectively wipe out your returns.