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A 29-year-old who earns Rs 38 lakh a year and has Rs 75 lakh in savings took to Reddit with a question that sparked a debate about money and early retirement.
His plan raised eyebrows. (representational image)
A 29-year-old professional who earns Rs 38,000 a year turned to Reddit for advice after receiving a new job offer worth $60,000 a year. While the role promises higher income, it comes without benefits like PF, NPS and insurance. The man, who already has Rs 75 lakh in savings, said his biggest goal is to retire at the age of 35.
His post led to a discussion about salaries, savings and whether early retirement is actually possible. The user shared his status on Reddit under the title “Career Switch Decision.” He explained that he currently earns Rs 38 LPA and receives Rs 2.32 lakh every month, besides Rs 27,000 in PF and Rs 11,000 in NPS contributions.
He said a new opportunity came his way in the form of a contract role paying $60,000 a year. However, unlike his current job, the new position does not offer benefits like PF, NPS, insurance or gratuity.
He explained his financial resources
“I am 29 years old, with annual package of 38 LPA, monthly payments of 2.32 lakhs, 27 lakhs in PF and 11 lakhs in NPS. I am getting another opportunity, a contract role, for an annual package of ₹60 lakhs. But it does not have any NPS/PF/insurance/severance pay etc,” he wrote.
The Reddit user added that he already has three-year-old health insurance and a term insurance plan that he has kept for about five years. He also shared details about his personal finances.
According to the post, he is married and his wife earns enough to support herself. He currently has savings of Rs 75 lakh and maintains an emergency fund of Rs 3 lakh. His monthly expenses are about Rs 75,000. Since he works remotely and lives with his parents in his hometown, he doesn’t have to pay rent.
“The reason I’m inclined to switch is because I definitely want to retire at 35,” he wrote, asking others whether accepting the new role made sense and whether retiring at 35 with no other source of income would be realistic.
Reddit users shared their views
The post received mixed reviews from users. One person wrote, “A $60k contract will give you a lot of free money to save as it is only 50% taxable and 0 GST if you export the service. So you will only pay tax on $30k. This difference covers your insurance balance etc. If it is a very strong contract and 1 year guaranteed pay, you should take it.”
Another user advised, “Retiring with only 3-4 credits won’t be enough… You have 40 more years ahead of you… Maybe work until you’re 40… Because after 35 you’ll be making a lot of money… That would increase your credit dramatically.”
One person commented, “Your new CTC rate of ~55 LPA will be much higher than the current 38 LPA. Since it is a contract role and based in India, you can show 50% of revenue as expense without having to submit any invoices. This reduces the tax liability significantly. It doesn’t matter on PF. You can contribute NPS of 50k from your end. Retiring at 35 depends on what you want your corpus to be. Realistically, in 6 years, you need to reach ~3 Cr additional group assuming average growth in salaries and expenses.”
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