Inflation Calculator: What Your Value Will Be of Rs 1 lakh after 10, 20 and 30 years? – News about money

Today, monthly income of Rs 1 lakh is considered a good salary in a country like India. It is enough for a middle-class family to lead a respectable life, covering expenses such as housing, education and other basic requirements. But imagine earning the same amount in 10, 20 or 30 years. Will it still have the same value? Certainly not. Inflation will erode the purchasing power of the rupee over time, reducing the real value of your money.

Depreciating power of rupee

To understand the effect of inflation, let us consider the value of Rs 1 lakh in the future:

After 10 years (at 6% inflation): The value of Rs 1 lakh will reduce to approximately Rs 55,840.

After 20 years: It will shrink further to Rs 31,180, less than one-third of its original worth.

After 30 years: It will be worth just Rs 17,410, a fraction of its current value.

These numbers highlight a harsh reality: While Rs 1 lakh today might be enough to sustain a comfortable lifestyleit will lose its usefulness in the face of rising costs if you don’t plan for inflation.

How inflation erodes wealth

Inflation is an invisible thief that constantly reduces the purchasing power of money. For example, a car priced at Rs 10 lakh today will likely cost much more 20 years from now. Similarly, expenditure on food, rent and other necessities will increase. This constant rise in prices, along with the stagnant value of your savings or income, could disrupt your financial plans if not taken into account in advance.

Smart Retirement Planning: Beating Inflation

The erosion of the value of money underscores the need for smart financial planning, especially for retirement. If your investments return 6%, but inflation also increases by 6%, your real return is effectively zero.

To secure your future:

Invest strategically: Focus on investment options that offer returns that beat the rate of inflation, such as stocks, inflation-indexed bonds or well-managed mutual funds.

Re-evaluate goals: Regularly assess whether your goals financials align with estimated inflation rates.

Diversify your investments: Balance your portfolio with assets that are resistant to inflation.

Protect your retirement with gold

Inflation can silently erode your wealth, but with proactive and careful planning, you can counteract its effects. Start building a retirement corpus that grows faster than inflation to ensure your dreams come true. of a golden pension become a reality – not just a fleeting aspiration.