Retirement Calculator
About Retirement Calculator
Retirement Calculator — estimate how much corpus you need to retire comfortably. Plan ahead by factoring in inflation, life expectancy, and post-retirement expenses to ensure financial independence.
How to use the Retirement Calculator
- Enter your current age (e.g., 30 years).
- Enter your planned retirement age (e.g., 60 years).
- Provide your current monthly expenses (e.g., ₹50,000).
- Enter expected inflation rate (typically 6-7%).
- Enter expected post-retirement return rate (e.g., 7-8%).
- Enter life expectancy (e.g., 85 years).
- Click Calculate to see required retirement corpus and monthly savings needed.
Example Calculation
If you're 30 years old, plan to retire at 60, have monthly expenses of ₹50,000, expect 6% inflation and 8% post-retirement returns, and plan to live till 85, you would need a corpus of approximately ₹3.5-4 crores to maintain your lifestyle.
Key Retirement Planning Factors
- Inflation — Your ₹50,000 monthly expense today will be ₹2.87 lakhs at retirement (30 years, 6% inflation).
- Life Expectancy — Plan for 20-25 years post-retirement to avoid outliving your savings.
- Healthcare Costs — Medical expenses rise faster than general inflation, factor in extra cushion.
- Lifestyle Changes — Consider travel, hobbies, and other retirement goals.
- Emergency Buffer — Keep 10-15% extra for unforeseen expenses.
Retirement Planning Tips
- Start early — even small SIPs at 25 can build massive corpus by 60.
- Diversify investments — mix equity, debt, PPF, NPS for balanced growth.
- Review annually — adjust savings as income grows and goals change.
- Don't rely only on EPF/PF — build additional retirement savings.
- Consider NPS for tax benefits and disciplined retirement savings.
FAQs
How much should I save for retirement?
A common rule is to save 15-20% of your income for retirement. The earlier you start, the less you need to save monthly due to compounding.
What if I start late?
Starting late means you need to save more aggressively. If you start at 40 instead of 30, you may need to save 25-30% of income. Use the calculator to see exact numbers.
Should I include home in retirement corpus?
Your home provides shelter but not income. Don't count it in retirement corpus unless you plan to downsize or rent it out. Focus on liquid investments.
What's a safe post-retirement return rate?
Assume 7-8% for balanced portfolio (mix of debt and equity). Don't assume high returns as you'll shift to safer investments post-retirement.
Use this calculator to start planning today — the power of compounding works best when you give it time. Consult a financial advisor for personalized retirement planning.