Intro: A Thought Every NRI Has Had…
Imagine this: You’ve spent decades working abroad. You’ve built a solid portfolio, maybe even bought a house overseas. Your life has been stable and comfortable.
But despite all this, there’s one recurring thought you can’t ignore:
“Should I move back to India? Can I retire peacefully, with dignity, and without worrying about money every single month?”
If you’ve asked yourself this, you’re not alone. In fact, in 2024 alone, NRIs like you and me sent over $129 billion back to India. That’s not just a number. That’s a signal. A signal that our hearts still beat for home.
But here’s the uncomfortable truth: While many NRIs think about retiring back in India, most are not financially ready for it.
This guide is different. No fluff. No theory. Just practical, real-world advice based on experience. I’m not a textbook expert. I’m a fellow NRI who has built investments across the UK, India, and beyond. What you’ll read here has been lived, tested, and implemented.
The Harsh Reality: India Isn’t Always “Cheap”
Most NRIs assume India is incredibly affordable. Yes, labor, transport, and groceries can be cheaper. But if you’re planning to settle in a Tier 1 city like Mumbai, Bangalore, Pune, or Gurgaon, while maintaining a Western lifestyle – the cost adds up fast.
- A well-located 3BHK in a decent area? ₹1.5–2.5 Cr.
- International school fees? ₹1–2.5 L/year/child.
- Comfortable monthly expenses (without rent)? ₹1.5L – ₹2L+
If you think a ₹5 Cr corpus will last a lifetime, think again – unless it’s deployed wisely and tax-efficiently.
Should You Buy a Home in India?
Buying a home feels like the ultimate symbol of “settling down.” But it’s also one of the most irreversible financial decisions.
My advice?
- If you’re 100% sure you’re returning in 1–2 years: buy and rent it out.
- If unsure: rent first. Explore different cities. Experience India before locking yourself in.
Also consider Tier 2 cities like Kochi, Jaipur, Coimbatore – better infrastructure, lower costs, and peaceful living.
Health Insurance and Emergency Funds: Non-Negotiables
- Buy private health insurance before age 50
- Family floater plan (10L–20L): ₹10,000 – ₹50,000/year
- Create an emergency fund of ₹10L–15L
- Park it in liquid mutual funds or high-interest savings
- Remember: most policies in India have a 2–4 year waiting period for pre-existing conditions
- Budget extra for dental, eye care, physiotherapy (often not covered)
Monthly Expenses: Real Numbers
| Lifestyle | Tier-1 City (e.g. Pune, Bangalore) | Tier-2 City (e.g. Jaipur, Kochi) |
| Budget | ₹60K–80K/month | ₹45K–60K/month |
| Middle-class | ₹1.2L–1.8L/month | ₹1L–1.3L/month |
| Premium | ₹2L–3L/month | ₹1.5L–2.2L/month |
If you own your home and live modestly, even ₹1.2–1.5L/month is a realistic target.
Build Your Financial Infrastructure: Before You Move
- Open both NRE and NRO accounts
- NRE = for foreign income (tax-free, repatriable)
- NRO = for income earned in India (rental, dividends – taxable)
- After moving, don’t rush to convert your NRE account
- You get RNOR status (Resident but Not Ordinarily Resident) for 3 years
- You can continue using your NRE account and enjoy tax benefits
- Learn how DTAA (Double Taxation Avoidance Agreement) applies
- You might be able to claim relief on US dividends, interest, etc.
Turn ₹5 Cr into Monthly Passive Income – A Realistic Plan
Here’s a sample strategy to generate ₹1.5L–2L/month in retirement income:
- ₹1 Cr in liquid/gilt mutual funds (emergency + short-term parking)
- ₹1.2 Cr into 2 rental flats (e.g. Pune, Hyderabad) → rent: ₹45K–60K/month
- ₹2 Cr in equity mutual funds (set up SWP of ₹90K/month)
- Long-term value: over ₹16.8 Cr (even after withdrawals)
- ₹80L in dividend-paying global ETFs (e.g. VYM, SCHD) for USD income
This gives you 4 income sources:
- Rental
- SWP
- USD dividend yield
- Capital growth
And if structured well, this can be tax-efficient (as low as 5% total tax)!
Your 3-Phase Return Plan to India
Phase 1 (12–24 months before)
- Shortlist cities
- Visit in different seasons
- Finalize health insurance
- Set up NRE/NRO accounts
Phase 2 (6–12 months before)
- Restructure investment portfolio
- Start creating income streams (rent, SWP)
- Create emergency fund and buffers
Phase 3 (Post-return)
- Rent before buying
- Build local routine, healthcare, and social life
- Take part-time work or remote consulting if desired
Final Thoughts: You Don’t Need ₹10 Cr to Retire Rich
Even ₹5 Cr, if structured smartly, can support a rich, peaceful, and purpose-driven life in India.
This isn’t about downgrading your lifestyle.
It’s about reclaiming time, living intentionally, and retiring on your own terms.
If you’re planning your return to India, NRI Whizz is here to help you do it right – financially, emotionally, and practically.
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📌 Disclaimer: This blog is for educational purposes only. Please consult a certified financial planner before making retirement decisions