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Retirement Calculator

Calculate the corpus needed to retire and monthly savings required.

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How retirement planning works

Retirement planning has two phases: the accumulation phase(saving and investing before retirement) and the distribution phase(withdrawing from the corpus after retirement). This calculator models both:

  • Accumulation: How much to save monthly at the pre-retirement return rate to reach the required corpus.
  • Distribution: How large a corpus is needed to sustain inflation-adjusted monthly expenses throughout retirement, using the real return (post-retirement return minus inflation).

Key inputs and their impact

  • Inflation (6% default): The biggest wildcard. Every 1% increase in assumed inflation significantly increases the required corpus.
  • Life expectancy: Plan to at least 85–90 years. Running out of money in old age is a serious risk. Use a longer horizon.
  • Pre-retirement return: Higher assumed returns reduce the monthly savings needed. Be conservative — use 10–12% for equity-heavy portfolios.

Rule of thumb: retire at 60 with 30x expenses

For Indian retirees with a 25-year retirement horizon (age 60–85) and 6% inflation, a corpus of approximately 25–30× your annual retirement expenses (in today’s money) is a reasonable starting target.

Frequently asked questions

How much corpus do I need to retire?
The required corpus depends on your monthly expenses at retirement (inflation-adjusted), how long retirement will last, and the return your corpus earns during retirement. This calculator uses the present value of annuity formula, adjusted for the real return (nominal return minus inflation) during the retirement phase.
What is the 25x rule for retirement?
The 25x rule (from the 4% safe withdrawal rate research) says you need 25 times your annual expenses as your retirement corpus. For example, if you need ₹60,000/month (₹7.2L/year) at retirement, you need ₹7.2L × 25 = ₹1.8 Crore. This assumes a 60:40 equity-bond portfolio with a 30-year retirement horizon.
What return should I assume pre-retirement?
For a diversified equity mutual fund portfolio over 15+ years, 10–12% CAGR is a reasonable historical Indian market estimate. For a conservative balanced portfolio, use 8–10%. Always plan conservatively — if returns are higher, you end up with more; if lower, you won't fall short.
What return should I assume post-retirement?
Post-retirement, most people shift to lower-risk investments. A debt-heavy portfolio (FDs, bonds, annuities) might earn 6–8% p.a. The calculator uses the real return (post-retirement return minus inflation) to determine how long your corpus will last.
Should I account for EPF, NPS, and other retirement accounts?
Yes — the corpus calculated here is the total you need at retirement. If you already have EPF, NPS, PPF, or other retirement savings accumulating, subtract their projected value at retirement from the corpus needed. The remaining gap is what you need to save additionally.

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