I am 25 and want to retire at 40. What is my FIRE number with monthly expense of Rs 50,000?

Shanker says early retirement, or FIRE, requires aggressive planning, especially when you aim to retire at 40 with just 15 years of income but 45–50 years of retirement ahead. If your current monthly expense is Rs 50,000, accounting for 6 percent inflation, it would rise to around Rs 1.2 lakh per month by the time you hit 40—an annual expense of roughly Rs 14.4 lakh.

Applying a safe withdrawal rate of 3.5 percent to account for longevity and market volatility, you’ll need a minimum FIRE corpus of Rs 4.1 crore. However, to truly enjoy financial independence — with room for lifestyle upgrades, travel, and unforeseen medical needs — it’s wise to aim for Rs 5–5.5 crore.

‘Play the SIP game right’

Reaching this target in 15 years means saving aggressively, says Shanker. You would need to invest approximately Rs 70,000–Rs 75,000 a month through SIPs in growth-oriented mutual funds with an assumed annual return of 12 percent.

A smart and practical move is to increase SIPs by at least 10 percent every year, aligned with your salary increments. This approach not only makes the target more manageable in early years but also leverages the power of compounding to accelerate wealth creation.

Your portfolio should be heavily tilted towards equity (up to 80 percent) in your earning years, gradually shifting to a more balanced allocation post-retirement. Additionally, investing in a separate emergency fund and comprehensive health insurance is critical, especially since you’ll be self-funded for most of your life. FIRE is achievable—but it demands financial awareness, early action, and unwavering commitment, she says

Reality check

FIRE isn’t always as simple as it looks. For many GenZs in India, consistently saving and investing Rs 70,000– Rs75,000 a month is challenging, especially with student loans, high rents, and rising living costs.

Not everyone can count on a high income, family support, or a smooth path free of emergencies. Market fluctuations, unforeseen setbacks, and inflation can all disrupt even well-made plans.

Chasing FIRE can also lead to sacrifices in the present—less travel, fewer hobbies, and missed experiences—which can lead to burnout or regret.

Achieving early retirement takes a lot of discipline and a good dose of luck, from your health to your career path. While the pursuit of FIRE can be motivational, it’s okay if you don’t get there by 40. What matters most is finding your own balance: grow your wealth but make sure to enjoy life along the way.