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				<title>Why financial independence will be hard to achieve even at normal retirement</title>
				<link>https://freefincal.com/why-financial-independence-will-be-hard-to-achieve-even-at-normal-retirement/</link>
				<pubDate>Thu, 30 Apr 2026 00:30:27 +0000</pubDate>
								<dc:creator><![CDATA[M. Pattabiraman]]></dc:creator>				<guid isPermaLink="false">https://freefincal.com/?p=249369</guid>
					<description><![CDATA[Forget about early retirement; Most people will not become financially independent at normal retirement (55-60)....]]></description>

				<content:encoded><![CDATA[<figure><img src="https://freefincal.com/wp-content/uploads/2025/02/Why-financial-independence-will-be-hard-to-achieve-even-at-normal-retirement.jpg" class="type:primaryImage" /></figure><div class="x1e56ztr"><span class="x193iq5w xeuugli x13faqbe x1vvkbs x1xmvt09 x6prxxf xvq8zen xo1l8bm xzsf02u">Forget about early retirement; Most people will not become financially independent at normal retirement (55-60). Unlike early retirement, this is a mandatory retirement. Otherwise, our quality of life will significantly decrease, and we will depend on our children. Also, <a href="https://freefincal.com/retirement-crisis-india/">why have we not seen a retirement crisis in India?</a></span></div>
<div class="x1e56ztr"><span class="x193iq5w xeuugli x13faqbe x1vvkbs x1xmvt09 x6prxxf xvq8zen xo1l8bm xzsf02u"><br class="html-br" />(1) For this, we need to invest an amount equal to at least 75% of expenses (that will continue in retirement) as early as possible. You can deduct expenses for your parents, children, and EMIs and travel for work. Even then, this 75% target for expenses is tough to achieve.</span></div>
<div class="x1e56ztr"><span class="x193iq5w xeuugli x13faqbe x1vvkbs x1xmvt09 x6prxxf xvq8zen xo1l8bm xzsf02u"><br class="html-br" />(2) income minus expenses should be a big enough number for this.</span></div>
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<div class="x1e56ztr"><span class="x193iq5w xeuugli x13faqbe x1vvkbs x1xmvt09 x6prxxf xvq8zen xo1l8bm xzsf02u">(3)  For this, the income should be high enough</span></div>
<div class="x1e56ztr"><span class="x193iq5w xeuugli x13faqbe x1vvkbs x1xmvt09 x6prxxf xvq8zen xo1l8bm xzsf02u"><br class="html-br" />(4) This implies that expenses should not grow as fast as income. A mistake many make in the name of &#8220;I deserve&#8221; this and that.</span></div>
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<div class="x1e56ztr"><span class="x193iq5w xeuugli x13faqbe x1vvkbs x1xmvt09 x6prxxf xvq8zen xo1l8bm xzsf02u">(5) Debt should be kept to a minimum. If you &#8220;must&#8221; own your roof, there will be implications. Cash-rich is better than asset-rich cash-poor.</span></div>
<div class="x1e56ztr"><span class="x193iq5w xeuugli x13faqbe x1vvkbs x1xmvt09 x6prxxf xvq8zen xo1l8bm xzsf02u"><br class="html-br" />(6) We need luck and providence to escape huge expenditures or frequent unexpected recurring expenses due to health/hospitalization, etc. An emergency fund equal to six months of expenses has limited utility.</span></div>
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At least these many stars must align for an ordinary guy to become financially independent in retirement. I am sorry to say this will not happen for most people. It is not impossible, but it is pretty hard. Changing our social station always is.</span></div>
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<div class="x1e56ztr"><span class="x193iq5w xeuugli x13faqbe x1vvkbs x1xmvt09 x6prxxf xvq8zen xo1l8bm xzsf02u">So investing in that small cap fund will not save anyone unless the investment amount is large and grows larger consistently (in a risk-managed portfolio).</span></div>
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<div><strong>&#8220;This is so de-motivating. Is there no hope left for me?&#8221;</strong></div>
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<div>What I have stated is the ground reality. I am only saying that the cup will never be full of most people. That does not mean we stop trying to fill it.</div>
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<div>We will have to try our best: increase income as much as possible, work our backs off, keep expenses at a minimum, etc. The more we sacrifice our wants, the better our chances.</div>
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<div>Yes, we should not sacrifice all our dreams, but considering that financial independence at normal retirement is mandatory, some sacrifice is essential. Like everything else in life, a balance is essential here, too. We can find the balance only if we understand both sides of the coin &#8211; short-term gratification and long-term independence.</div>
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<p>“Obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.” – Michael Jordan</p>
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<p>The post <a href="https://freefincal.com/why-financial-independence-will-be-hard-to-achieve-even-at-normal-retirement/">Why financial independence will be hard to achieve even at normal retirement</a> appeared first on <a href="https://freefincal.com">freefincal</a>.</p>
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