Avinash puts monthly costs for a family of four at 92,000 rupees to 3.55 lakh rupees, and the savings you need depend on whether you keep working or want to retire.
Avinash puts monthly costs for a family of four at 92,000 rupees to 3.55 lakh rupees, and the savings you need depend on whether you keep working or want to retire.
Avinash opens with the question: how much money do you need to move back to India? His answer is that the amount depends on several factors, not on one number that suits everyone. He names three main ones. The first is expenses, meaning the lifestyle you want to keep after you return. The second is age and family situation: how old you are, how many children you have and how old they are. The third is career plans, whether you plan to retire, want a less stressful job or want to grow in your career. He also points to your risk appetite for investments and other factors.
Avinash, who says he moved to India after living in the US for 20 years, takes the question in three steps. He looks at the cost of living in India, then at the savings needed for different situations, and then at how to arrive at a number that fits your own case. Throughout, he presents the figures as a ballpark framework that you adjust for your own situation. He says the calculation changes if you are single or retired, if you have one child, if you already own a house, or if you plan to live in a smaller city.
Avinash says the cost of living in India depends on your lifestyle, your family size and the city where you live. He notes how wide the range can be: a cup of tea can cost anywhere from 20 rupees to 200 rupees. In the end, he says, the cost depends on the lifestyle you want to lead.
"The lifestyle that you want to lead determines the cost of living."
His worked example is a family of two adults and two school-going children in one of the major cities. He does not name the city in the video. He gives typical monthly ranges for each category, and these are ballpark figures rather than fixed prices:
His overall monthly range is 92,000 rupees to 3.55 lakh rupees. The video was published in May 2025, so these are the figures he gave at that time. This is general information, not personal financial, tax or investment advice.
Avinash names housing and school education as the two biggest components of the cost of living, and he calls them the biggest variable in the expense. Without those two, he says, the monthly range falls to about 50,000 to 1.5 lakh rupees. If you already own a house, you can leave rent out of the calculation. If you have other plans for your children's education, you can leave school fees out as well.
He then describes three lifestyle levels. The lower end, 92,000 rupees a month, fits a comfortable middle-class lifestyle. The upper end, 3.55 lakh rupees a month, assumes a luxury lifestyle. He says that figure is not unrealistic, and that it applies to business owners and high-earning professionals who want a premium life. For an upper middle-class family, he suggests a realistic budget of 1.5 lakh to 2 lakh rupees a month for housing and school together, which he says balances quality with some savings.
His aim is to help you arrive at a number that is appropriate for your own situation. That is why he works through ranges rather than one headline figure.
If you plan to work and earn in India, Avinash says you do not need a massive corpus up front. You do need a safety net. He suggests an emergency fund of one to two years of your monthly expenses.
He works through an example in which monthly expenses are 1.5 lakh rupees. At that level, an emergency fund covering one to two years comes to 18 lakh to 36 lakh rupees. He then adds money for relocation and setup costs, which he puts at 15 lakh to 39 or 40 lakh rupees. For a wider list of one-off moving costs, see the relocation budget for moving back to India.
In his summary, Avinash puts the total savings for this case at 40 lakh to 75 lakh rupees. He says that amount gives you financial security when you move to India and keep working, and that it covers emergencies and setting up your family back in India. If you have other income sources, investments or a business, you will need less of a corpus up front.
He also points out that many people prefer to have a paid-off house before moving, even when they plan a less stressful job. A mortgage is one of the biggest expenses that can come off a monthly budget, and without it the budget can be more sustainable in India.
Avinash then turns to a different situation: retiring, or reaching financial independence, on a lifestyle of 1 lakh rupees a month in India. He assumes retirement at 60 and a life expectancy of around 90. That means the money has to last about 30 years, during which you draw on your corpus.
He starts with the 4% rule. Under that rule, you withdraw 4% of your retirement corpus in the first year, then adjust the amount each year for inflation, so that the money lasts 30 years. Monthly spending of 1 lakh rupees is 12 lakh rupees a year, so a 4% withdrawal rate needs a corpus of 3 crore rupees. A lakh is 100,000 rupees and a crore is 10 million rupees.
He also lists the assumptions behind the rule: a 7 to 8% annual return from investments, 2 to 3% inflation, a 30-year retirement, and a portfolio invested mainly in US equities and bonds. He notes that the rule was designed for the US, based on historical data, and he then explains why it may not suit India. For more on early retirement as an NRI, see early retirement insights and strategies for NRIs.
Avinash's main concern is inflation. He says that in India and other emerging markets, inflation is usually 5 to 7%, and sometimes higher. That is well above the 2 to 3% inflation that the 4% rule assumes. For India's CPI inflation data, see the Ministry of Statistics.
He then points to safe options. In his view, the post-tax returns on fixed deposits and debt funds are very small. He also warns that market volatility is large and can erode capital faster than expected, although a stable environment could make a difference. Last, he says healthcare, housing and some other retirement costs can rise faster than CPI. For the health insurance side of this, see the guide to health insurance costs for a returning NRI family.
When the 4% withdrawal rate is used in India, he says, withdrawals can outpace portfolio growth and deplete the corpus. That can happen faster than expected, especially in the early retirement years. For this reason he says the 4% rule might not be appropriate for an Indian setting.
Avinash gives his own opinion on the right rate for India. He says a realistic withdrawal rate is 3.5% if you invest in a diversified portfolio of equity and debt, or 2.5% to 3% if you mostly hold fixed-income instruments.
He shows what each rate means for the same annual expense of 12 lakh rupees:
| Withdrawal rate | Corpus needed for 12 lakh rupees a year |
|---|---|
| 4% | 3 crore rupees |
| 3.5% | 3.4 crore rupees |
| 3% | 4 crore rupees |
| 2.5% | 4.8 crore rupees |
He then tests the idea with a real return. Assume inflation of 6% and an investment return of 9% a year. The net real return is then 3%, so a 3% withdrawal rate preserves your corpus in real terms, he says. If you want the corpus to last more than 30 years without depleting it, he suggests using a rate a little below 3%.
He also recommends keeping about 3 years of liquidity in fixed instruments such as fixed deposits and savings. The purpose is that you do not have to dip into equities or other assets when markets are not doing well.
For a stress-free early retirement on 1 lakh rupees a month, Avinash says to aim for a corpus of 4 crore rupees. If you have passive income, rental income or other investments, that target can be lower.
He offers a second way to look at it. If you have a paid-off house, enough corpus for your children's education, and a separate corpus for healthcare, you have more flexibility with living expenses. On that basis, the corpus you need can be lower still.
His closing summary has two parts. If you are still working, savings of 40 lakh to 75 lakh rupees help with the move, with your emergency fund and with setting up your family in India. If you are aiming for financial independence or retirement, he says you need a corpus of 4 crore rupees for each 1 lakh rupees of monthly lifestyle, and you should factor in healthcare costs, passive income and investment growth.
For a step-by-step sequence, read the nine-step NRI roadmap for planning finances. The return-to-India planner offers a free personalised plan.
Watch the full video on the Desi Return YouTube channel.
Build a free personalised plan with the return-to-India planner, or explore the Financial Blueprint course for the move from NRI to resident finances.
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0:01 Today I want to talk to you about how much money do you need when moving to India. Hi everyone, this is Avinashir and I moved to India after living in US for 20 years. At JC Return, we want to provide captivating stories, valuable information so that you can make an informed decision of staying abroad or moving to India. Let's get started. Thinking about moving to India? Wondering how much money do you need to sustain your lifestyle? So the amount of money that you need depends on several factors. First expenses. The lifestyle that you want to maintain after returning to India. Second age and family situation.
0:55 How old are you? How many kids? how old are the kids are and so on. Third, career plans. Are you planning to retire or want to work in a less stressful work environment or you want to grow in your career and also other factors like your risk appetite for investments and much more. So in this video I will walk through this complex question in a systematic way. cost of living in India, savings required for different situations and guide you to come up with a number that's appropriate for you. So let's dive
1:39 In. First cost of living. Your cost of living in India depends on your lifestyle, family size and the city where you live. India offers such a broad range of lifestyle where you can have a same cup of tea for 20 rupees all the way to 200 rupees. So at the end it's the lifestyle that you want to lead determines the cost of living. I want to talk through this framework through a ballpark number by covering major categories which can help in your planning. I will walk you through an example of a family, two adults and two schoolgoing kids. Break it down into different categories and the typical cost range per month in one of the major cities. If you are a single retired or do you have a one kid and if you already have a house or living planning to live in a tu city, please
2:40 Make the adjustments accordingly. First house rent and maintenance. This is a huge range 20,000 rupees to one lakh. Again depending on the lifestyle, depending on the location, this is the range. that is the lifestyle one can choose in India. Next, school fees for two kids. It can vary anywhere from 20,000 all the way to one lakh. And this is not outside the range especially if you have kids that you're sending to IB or IGCSC schools. Next, groceries ranging anywhere between 8,000 to 20,000 rupees per month. Depending on the quality of the groceries that you need, the variety of it, the fruits and so on, it can range a little bit.
3:41 Utilities which includes your electricity, gas, internet, cable, varies from 5,000 to 15,000. Domestic help, which includes cook, driver. Again, this can range anywhere between 4,000 to 20,000. Do you have someone who just comes and help with mopping and washing utensils? Or you have a full-time maid as well as you have a cook or a driver and it just keeps adding. Next is kids activities. It can range anywhere between 10,000 to 25,000. For one kid, for one activity, you're looking anywhere between 2 to 3,000. And when you have three activities for two kids, it can easily catch up to 18 to 20,000 rupees per month. Next is food and entertainment. How often do you eat out and what kind of restaurants that you visit? It can range from 5,000 to 15,000 rupees. Shopping, grooming, anywhere between 3,000 to 10,000 rupees.
4:44 Travel 5,000 to 20,000 depending on whether you're doing domestic, international and your own personal preferences. This can vary a bit. Next is car which includes a fuel maintenance can range anywhere between 8,000 to 10,000 rupees. Health insurance anywhere between,000 to 5,000. Again, even though you might have an insurance, there might be out of pocket expenses. so just factor in some expense based on your personal situation. Again, the medical expenses 1,000 to 5,000 and miscellaneous for anything that was not categorized that can be between 2,000 to 10,000 rupees per month. So when you look at it 92,000 to 3 lakh $55,000 is the range. I know the range is huge as I said earlier it just depends on the lifestyle. I think the two main big components of this cost of living is housing and school education and that's the biggest
5:45 Variable in the expense. If you remove those two big components the range can be anywhere between 50,000 to 1.5 lakh. So if you have your own house, you can remove that from your cost of living and so on. So the lower end 92,000 fits a comfortable middle class lifestyle. The higher end 3.55 lakhs per month assumes a luxury lifestyle and the number is not unrealistic but it applies to business owners, high earning professionals who wants to have the premium luxury life. A realistic budget for an upper middle-class families which includes the housing and school can be anywhere between 1.5 lakhs to two lakhs range and this would balance quality with some savings. If you have house or if you have other plans for the kids education you can remove that from the overall cost of living
6:46 Calculation. So let's take an example. Say your monthly expenses is 1.5 lakhs per month. What do you need to sustain this lifestyle when moving
7:00 Back? Now that we talked through these cost of living, if you are planning to work and earn in India, you don't need a massive corpus up front, but you need to have a safety net. Typically you need an emergency fund per 1 to two years of your monthly expenses. So in this case if you have a 1.5 lakh per monthly expenses then the purpose or the emergency fund that you need is anywhere between 18 to 36 lakhs. And next you would need some money for relocation and setup cost. It can vary anywhere between 15 lakhs to 39 or 40 lakhs. So the total savings in this case that you need is anywhere between 38 lakhs to 75 lakhs.
7:51 So having a 40 to 75 lakhs of savings give you financial security when moving to India when you're continuing to work. If you have other income sources or investments or business you won't need this much of massive corpus up front. Even though some people who are planning to work and they want to have a little bit less stressful work, a lot of people prefer to have a paidoff house before moving so that they don't have a mortgage and that's one of the biggest expense that can come off your monthly expenses and that can be much more sustainable in India. Now let's talk about a situation when you are planning to retire. If you don't want to work anymore or want a complete financial independence, how much do you need to retire and sustain let's assume a one lakh per month lifestyle in India? So let's assume that you're retiring at age of 60 and you
8:53 Have a life expectancy till like 90 years. So which means about for 30 years you need to have enough money where you can take it from your corpus fund. So the famous 4% rule, what does it say? You can withdraw 4% of your retirement corpus in the first year and then adjust the amount each year for inflation. The idea is that the money should last 30 years. So for example, if you have an annual expense of 1 lakh per month, which is going to be 12 lakhs and at a 4% withdrawal rate, you need a corpus of 3 cr Indian rupees. But keep in mind the 4% rule might not work for a high inflation environment. So this is 4% rule is designed for us based on historical data. The assumption is 7 to 8% annual
9:55 Return from your investments, 2 to 3% inflation, 30 years of retirement horizon and you would be investing primarily in a US equities and bond portfolio. But for high inflation environment like India or any emerging emerging markets inflation is much higher typically 5 to 7% and sometimes higher the safe investments like FDS debt funds the post tax returns are very very small. Third, market volatility is huge and can erode capital faster than expected. But if you have the exposure in a stable environment, it could be different. Last, healthcare and housing and some other retirement cost can raise faster than CPI. So keep that in mind and why the 4% rule might not be
10:57 Appropriate for Indian environment. So when we use that 4% withdrawal rate in India that might outpace the portfolio growth leading to depletion of corpus. It's faster than you expected especially in the early retirement years. So my opinion the realistic withdrawal rate for India would be a 3.5% if you're investing in a diversified equity and a debt portfolio or a 2.5 to 3% if you're mostly using a fixed income instruments. So let's look at the corpus required based on the different withdrawal rate. So for the same 12 lakh annual expense at a 4% withdrawal rate is 3 crores and at a 3% withdrawal rate we are looking at 4 crores and 3.5 3.4 3 crores and a 2.5 withdrawal rate we are looking at 4.8 crores. So what do you think the realistic withdrawal rate to preserve
11:58 Your corpus in real terms inflation adjusted? Your investment needs to earn more than the inflation. Assume the inflation is 6%. Your investment in equity plus debt portfolio needs to have 9% annual return. In that case the net real return is 3% which is after inflation because inflation itself is 6% and your return is 9%. So the net real return is 3%. In this case, a 3% withdrawal rate preserves your corpus and you can withdraw it. But if you want your corpus to last more than 30 years, especially without depleting it, use something a little bit lower than 3%.
12:44 Another key thing especially if you have investments in India you want to have 3 years of liquidity in some fixed instruments like FDS savings so that you're not dipping into equities or other assets when the markets are not good. So for a stressfree early retirement at 1 lakh per month aim for 4 crores corpus and if you have a passive income or a rental income or other investments it can be lowered. You can look at this also in a different way when moving to India. If you have a paid off house, enough corpus for kids education and maybe another corpus for your healthcare, this provides flexibility with living expenses and based on this your corpus fund can be even lower. So let's summarize. If you're still working, having a 40 lakhs to 75 lakhs in savings would help when you're
13:45 Moving back to India and to have enough funds for emergency as well as for setting up your family back in India. If aiming for financial independence or retiring, you need a 4R per one lakh per month lifestyle. factor in healthcare cost, passive income sources and investment growth when you are thinking about your corpus amount. I hope this video helped you understand how much money you need when moving to India. If you found this useful, hit the like button, subscribe for more insights and also join our WhatsApp community to connect with others who are in a similar journey. Drop a comment below with your thoughts. How much do you think is needed to move back comfortably? Let's discuss. Until next time, take care.
Your RNOR window, retirement accounts, and move date planned as one sequence.
