Inflation Calculator: How much will your Rs 1 lakh be worth after 10, 20 and 30 years? – Money News

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

Decrease in power of the rupee

To understand the effect of inflation, let’s analyze 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 maintain a comfortable lifestyle, it will lose its usefulness in the face of rising costs unless you plan for inflation.

Also read: Inflation calculator: How much will Rs 1 crore be worth after 10, 20 and 30 years?

How inflation erodes wealth

Inflation is an invisible thief that gradually reduces the purchasing power of money. For example, a car priced at Rs 10 lakh today is likely to cost much more after 20 years. Likewise, expenses related to food, rent, and other necessities will increase. This constant rise in prices, coupled 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 highlights the need for intelligent financial planning, especially for retirement. If your investments earn a 6% return, but inflation also increases by 6%, your real returns are effectively zero.

To secure your future:

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

Reevaluate your goals: Regularly evaluate whether your financial goals align with projected inflation rates.

Diversify investments: Balance your portfolio with inflation-resistant assets.

Protect your golden retirement

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