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Even if your money is safe in FDs, inflation can quietly halve its value over 20 years. Here’s how to keep your savings working
Fixed deposits may seem safe, but inflation can halve their value over 20 years.
A 67-year-old retiree believed he had secured his future by placing his entire savings of Rs 1.2 crore in fixed deposits, confident he could live comfortably. But when CA Nitin Kaushik reviewed his plan, he realised that this apparent safety masked a hidden risk. While the money was secure in the bank, its purchasing power was quietly eroding, like air slowly leaking from a tyre.
Kaushik explained on the social media platform X that money which doesn’t grow loses its value over time. With an average inflation of 5%, the value of money halves in 20 years, meaning Rs 1 crore today would feel like just Rs 50 lakh in two decades.
The Pitfall Of Post-Retirement FDs
Many retirees invest solely in FDs to avoid risk. Kaushik pointed out that people are living longer these days, with a 65-year-old potentially living another 20-25 years. Most retirement plans, however, are not designed for such a long period.
While FDs keep capital safe, they do not protect your lifestyle or future needs.
Retirement doesn’t mean your time horizon ends.I once met a retired gentleman — 67, peaceful, and proud of what he’d built.He had around ₹1.2 crore saved, every rupee locked in fixed deposits.
He smiled and said, “I sleep peacefully. No tension.”I nodded — but deep down, I… pic.twitter.com/QjeBdzz17M
— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) November 25, 2025
A Balanced Portfolio For Stability And Growth
Kaushik advised the retiree to diversify his investments: 70% in bonds for stable returns, 20% in quality dividend-paying stocks for long-term growth, and 10% in liquid funds for emergencies.
This approach is not high-risk but provides a balanced strategy to combat inflation and keep money productive.
The Myth Of Zero-Risk Investments
Kaushik emphasised that no investment is truly risk-free. Even cash loses value over time due to inflation. His advice to retirees: don’t lock away your money, let it keep working.
Retirement is not the end of wealth-building; it’s when your money should be most active to ensure a comfortable life.
November 26, 2025, 14:36 IST
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