There are three things that matter in property: location, location, location,” said Harold Samuel, a real estate tycoon in Britain. The phrase is equally applicable to your retirement decision. The decision of where to retire plays a prominent role in calculation how much money you should save for the retirement.

While 47 per cent of Indians are not saving for the retirement, knowing how much you need to save is probably the most pertinent question for most of us who wants to save and invest.

But before spreading the map on the table to search the right location to decide the size of the retirement fund, you should not forget the few basic truths about retirement.

When planning for retirement, earlier you start saving and investing, the better off you will be. However, no matter when you start, you must follow some basic rules and advice of experts to increase your retirement kitty.

 Explore different asset classes: While traditional saving options such as public provident fund (PPF) are good options to protect your capital, investing in diversified asset classes based on your risk profile, you can earn better returns. For calculation, we have considered an annual return of 7.5 per cent on retirement saving, which we believe can be easily achieved and even beaten.

Limit your cost of living: Don’t be tempted to increase your cost of living whether by increasing consumptions or adding a few extra trips when you get a raise or a bonus. Invest your new income and bonus for retirement saving.

Limit expense on kids: While spending on children’s education and passion is fine, do not burn your saving by doing destination birthday parties or gifting a new iPhone every year.

Save on medical expense: Healthcare cost could prove a huge drag on your retirement savings. To meet your and spouse’s healthcare needs in old age, buy a health insurance cover of adequate size.

Extra fund: Life is full of surprises. Even when you have calculated and made provisions for most possible events in the life, you must keep something aside for surprise events. Use them only when you cannot face an arising situation from the regular funds.

Where do you need the lowest retirement saving amount?

This map shows how much money you need to sustain financial freedom (or retirement) for 20 years in different Indian cities if you retire tomorrow. It has been assumed that this amount will earn an annual return of 7.5 per cent.

To calculate the retirement kitty, based on the inflation trend data from statista, inflation in India has been assumed around 5 per cent.

The city for which you need to save the least for retirement is Thiruvananthapuram. With just Rs 98 lakh, you can chill for 20 years in retirement, bathing in the calmness of carefree life. A major academics and information technology hub, the city is ranked among the best cities to live in India in many surveys.

Navi Mumbai comes a close second. Staying close to Mumbai, at Navi Mumbai, you can enjoy retirement pleasures for 20 years in just Rs 1 crore. The next three cities are Mysore, Visakhapatnam, and Bhopal, each requiring retirement saving of less than Rs 1.15 crore.

So, select your location of retirement carefully. If you have already decided on the location, then consider the facts mentioned in the table to calculate your future requirement.

(The author is founder developer of Sqrrl, an investment and savings app).