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As job uncertainty and layoffs continue to impact India’s private sector workforce, many salaried professionals are reevaluating the long-held belief that buying a home in a metro city should take precedence over building a retirement corpus. A recent Reddit discussion has reignited debate over whether financial security and stress-free living should take precedence over long-term home loan commitments.
The post argued that a retirement corpus of around ₹2 crore, capable of generating a monthly income of ₹1.25 to ₹1.3 lakh, can provide the freedom to retire or relocate to a tier-2 or tier-3 city, making home ownership optional rather than essential.
The Redditor questioned why many people commit to ₹1.5 crore home loans with only ₹50 lakh in savings, locking themselves into 15–20 years of EMIs and workplace stress. “When layoffs happen, people with heavy liabilities suffer the most, mentally and financially,” the post noted, pointing out that renters with adequate retirement savings often retain the flexibility to walk away from stressful jobs.
Retirement corpus versus home ownership
Several users suggested that financial independence should be the primary goal. “The goal isn’t to stop working, but to reduce the anxiety that comes from overleveraging,” the user wrote.
Another Redditor shared a personal experience of buying a 2BHK apartment in a tier-1 city in 2011, following an early-career layoff during the global financial crisis. “I paid off my home loan by 2022, but only started serious retirement investing after my second layoff,” the user said. Now 40, the commenter said owning a debt-free home offers stability, but true peace of mind would come only after reaching a larger retirement corpus of 35–40 times annual expenses.
Security of shelter still matters
Others pushed back, arguing that housing, owned or rented, remains a fundamental need. “In roti, kapda aur makaan, makaan is the hardest to secure,” one Redditor wrote, adding that while renting is viable, the uncertainty of frequent relocations can become difficult later in life. The suggestion, according to this group, was not to avoid buying a home altogether but to remain realistic about affordability and avoid overextending finances.
Another noted that if someone has enough savings to live comfortably without owning a home in a tier-1 city, relocating later to a tier-2 or tier-3 city could make sense. “Most people move out of big cities once they’re past their prime working years anyway,” the user said.
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Financial experts weigh in
Suresh Sadagopan, a financial expert, said that housing security must be planned well in advance of retirement, particularly for those who do not have another asset to fall back on. “For nearly 70–80% of retirees, the primary asset is a single home. Even those who do not own a house by retirement usually have earmarked funds to purchase one, whether in a city, a smaller town or through senior living options,” he said.
He cautioned that using a retirement corpus to buy a home at a late stage can be financially destabilising. “If someone reaches retirement without a house and is forced to dip into their retirement savings to buy one, it can severely strain long-term financial security,” Sadagopan said. In such cases, he advised exploring tier-2 or tier-3 cities, where rental housing is more affordable and day-to-day living costs are lower.
According to him, housing decisions should not be deferred until the age of 55 or 58. “Relocation or downsizing becomes much harder at that stage. If the funds to buy a home are not available at retirement, the option may simply cease to exist,” he said, adding that homeownership or housing security must be part of long-term financial planning.
Sadagopan stressed the importance of starting early. “People should plan at least 20 years ahead, either through retirement funds or a dedicated housing corpus, and avoid withdrawing from it for short-term needs. Housing is not just an emotional decision; it is a financial one that requires discipline and long-term foresight,” he said.
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