Financial Planning for Wedding: How to Prepare with Rising Costs?

Projected Wedding Costs Over Time

The Indian wedding market is valued at more than INR 10.5 lakh crore. As many as 80 lakh weddings are said to take place every year. An average mid-range wedding costs between INR 10-25 lakhs, while destination and high-end weddings can exceed INR 50 lakhs. Assuming growing inflation, today's prices, without any doubt, will significantly vary after 15-20 years of the current scenario.

With wedding costs rising due to inflation, it is essential to estimate how much a wedding might cost in the future. The projected costs below are based on an assumed annual inflation rate of 6-8%, which aligns with the historical rise in wedding expenses in India.

The linked insurance product do not offer any liquidity during the first five years of the contract. The policy holder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year. Shubh Muhurat Solution is a combination of Tata AIA Life Insurance Fortune Guarantee Secure and Tata AIA Life Insurance Smart Fortune Plus.

Shubh Muhurat is a combination of Tata AIA Life Insurance Fortune Guarantee Secure (Individual, Non-Linked, Non-Participating, Life Insurance Savings Plan) UIN:110N206V02 and Tata AIA Life Insurance Smart Fortune Plus (Unit Linked, Individual Life Insurance Savings Plan)-UIN:110L177V01.

How We Calculated Future Wedding Costs

The cost projections use the formula:

Future Cost = Present Cost × (1 + Inflation Rate) ^ Years
 

• Current Wedding Costs (2024): High-end weddings today cost between INR 50-1 crore+.

• Future Projections (Using an estimated 7% annual inflation rate):
   

  • By 2030 (6 years later):

    • 50,00,000 × (1.07)^6 = approx. INR 75-80 lakhs

    • 1,00,00,000 × (1.07)^6 = approx. INR 1.5 crore
       

  • By 2040 (16 years later):

    • 50,00,000 × (1.07)^16 = approx. INR 1.5-1.6 crore

    • 1,00,00,000 × (1.07)^16 = approx. INR 3 crore+
       

  • By 2030 (6 years later):

    • 15,00,000 × (1.07)^6 = approx. INR 22-23 lakhs

    • 25,00,000 × (1.07)^6 = approx. INR 38-40 lakhs

       

  • By 2040 (16 years later):

    • 15,00,000 × (1.07)^16 = approx. INR 50-52 lakhs

    • 25,00,000 × (1.07)^16 = approx. INR 77-80 lakhs

These estimates account for rising venue, catering, decor, and travel costs, which have historically increased due to inflation, demand for premium services, and economic growth.

To put things into perspective, here’s how inflation could impact wedding expenses:
 

Given these figures, it’s clear that early planning is essential to avoid financial strain in the future.

How Tata AIA’s Shubh Muhurat Helps You Plan for Wedding Costs

With rising costs, a dedicated savings plan like Shubh Muhurat ensures that your money grows systematically, allowing you to prepare for your child’s wedding without financial worries.
 

1. Goal-Based Savings with Structured Payouts Shubh Muhurat offers structured payouts that align with key wedding milestones, ensuring that you have funds ready exactly when you need them. Whether it’s booking a venue or securing a premium caterer, your financial plan will support your aspirations.

2. Inflation-Proof Wealth Growth Inflation significantly impacts wedding costs. With Shubh Muhurat, your money grows steadily over time, ensuring that your savings remain ahead of inflation and provide you with a substantial wedding corpus.

3. Life Coverage for Financial Security In addition to wealth growth, Shubh Muhurat offers comprehensive life coverage, ensuring that your child’s wedding dreams are protected even in unforeseen circumstances.

4. Protection Under MWPA With the Married Women’s Property Act (MWPA), the benefits of your Shubh Muhurat policy remain protected and accessible only to your family, shielding it from creditors and financial liabilities.

5. Premium Waiver for Unforeseen Situations The Benefit Protect Rider ensures that if any unforeseen event occurs, all future premiums are waived, allowing your savings to continue growing without disruption.

6. Tax Benefits for Smarter Saving With Shubh Muhurat, you enjoy tax benefits on both premiums paid and policy payouts, maximizing your savings potential and ensuring that more of your funds are available for wedding expenses.

Why Early Investment is the Key to a Grand Wedding

The earlier you start saving, the greater your financial flexibility will be. Here’s how early planning helps:
 

• Compounded Growth: Your investments grow exponentially over time.

• Lower Financial Burden: Smaller monthly investments now can accumulate into a large wedding fund.

• Greater Flexibility: With a structured plan, you can choose a luxurious venue, premium services, and high-end decor without financial stress.

Make Wedding Planning Stress-Free with Shubh Muhurat

A wedding should be a joyous occasion, free from financial concerns. By starting early with Tata AIA’s Shubh Muhurat, you ensure that your child’s wedding is everything you imagined—whether it’s a regal palace wedding, a serene beachside affair, or an international destination event.

Conclusion

Weddings are once-in-a-lifetime celebrations, and every parent dreams of making them extraordinary. With Tata AIA’s Shubh Muhurat, you can secure a structured, inflation-proof savings plan that guarantees a magnificent wedding without financial stress. By starting today, you ensure that your aspirations turn into reality, with every detail planned to perfection.

Plan early with Shubh Muhurat—because a dream wedding deserves the best financial foundation.